The results briefing of Frasers Property (FPL) on May 12 was initially thought to be a run-of-the-mill update on its operations and financials, so much so that a few analysts moved on to other results briefings which are often on Zoom or Webex. And indeed, there were questions on Bedok Point, residential landbanking, executive condominium strategy, and so on.

Around half an hour into the question-andanswer session, a couple of questions from media and analysts hovered around FPL’s share price and its deep discount to its net asset value (NAV). As at March 31, FPL’s NAV stood at $2.73. Since then, FPL has had a 37-for-100 shares rights issue priced at $1.18. The pro forma ex-rights NAV is $2.25, according to the rights issue announcement. FPL last traded at $1.19, or 0.53 times its post-rights NAV.

While most rights issues usually enhance liquidity, FPL’s deeply discounted rights tightened liquidity as the subscription rate was 90.6%. As a result, the Sirivadhanabhakdi family has raised its stake from a deemed interest in FPL of 86.63% to 88.89% — through a private company, TCC Assets, and Thai Beverage.

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