Singapore Airline’s follow-up fundraising via a mandatory convertible bond issue did not win the support of all shareholders. 

At the close of acceptance on June 16 2021, SIA received valid acceptances and excess applications of just over $3.75 billion in principal amount of the so-called Rights 2021 MCBs, which is equivalent to just 60.6% of the aggregate sum of nearly $6.2 billion SIA was trying to raise via the MCBs.

As indicated earlier, Temasek Holdings, the airline’s controlling shareholder, will stump up around $2.44 billion to mop up the rights to the MCB that other SIA shareholders did not want.

“The company wishes to first thank shareholders for demonstrating their support for the company by participating in the rights issue and enabling the successful completion of the rights issue,” says SIA.

“The completion of the Rights Issue forms an important part of the company’s strategy to deal with the impact of Covid-19 on its business,” says SIA, which, upon completion of this MCB, has raised more than $15 billion to help tide it through the pandemic.

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On May 19, the airline reported a record full-year loss of $4.27 billion as revenue plunged 76.1% y-o-y to $3.82 billion from $15.98 billion because air travel came to a near complete halt.

SIA shares closed June 18 at $5.05, up 1.2%.