Raffles United proposes $12 mil rights issue; another shareholder called up by CAD

Raffles United proposes $12 mil rights issue; another shareholder called up by CAD

Michelle Zhu
10/01/19, 07:39 am

SINGAPORE (Jan 10): Raffles United Holdings is seeking to raise up to $11.7 million by proposing to undertake a renounceable, non-underwritten rights issue of up to 234 million new rights shares at 5 cents each.

This represents a discount of about 39% to the counter’s closing price on Jan 8, the last trading day prior to the announcement.

Assuming full subscription, the net proceeds are estimated to be $11.6 million after deducting about $0.1 million for professional fees and related expenses.

In a Wednesday filing, the group says the rights issue will enable it to reduce its bank borrowings, finance its working capital requirements, as well as strengthen its overall balance sheet.

Raffles United has been on the SGX watchlist since Dec 5, 2018, after failing to meet the bourse’s minimum trading price criteria.

The group and its subsidiary, Kian Ho, is also being investigated by the Commercial Affairs Department (CAD) regarding an alleged offence under the Securities and Futures Act.

Raffles United on Wednesday issued a separate update announcing that its deemed substantial shareholder, Amanda Marie Teo Xian-Hui, has received an official Jan 9 notification from the CAD related to the release of her bond on Jan 3.

As per its previous updates on this matter, the group emphasises that its business and operations are not affected by the ongoing CAD investigations and will continue as normal.

Shares in Raffles United last traded at 8.2 cents on Jan 8.

Winners and losers from Singapore's budget as election looms

SINGAPORE (Feb 19): Singapore Finance Minister Heng Swee Keat boosted health-care and military spending, gave tax rebates to citizens and tightened rules on foreign workers ahead of an election that could come as early as this year. Heng announced a new $8 billion support package for seniors in his budget speech on Monday, as well as measures to help local businesses adopt new technologies. The expansionary fiscal plan will push the overall budget deficit to 0.7% of gross domestic product in the year ending March 2020, from a revised surplus of 0.4% this year. The finance minister opened....

Sasseur REIT FY18 DPU exceeds IPO forecast by 12.6%

SINGAPORE (Feb 18): The manager of Sasseur REIT announced a 4Q18 DPU of 1.999 cents, 28.1% higher than forecast. This also brings 2H18 DPU to 3.541 cents and FY18 DPU to a total of 5.128 cents. Sasseur REIT offers investors the unique opportunity to invest in the fast-growing retail outlet mall sector in China through its initial portfolio of four quality retail outlet mall assets. 4Q18 distributable income came in at $23.6 million, 28.1% higher than forecast while EMA rental income came in 1.6% higher than forecast at $31.2 million. Based on the Feb 18 closing unit price of $0.71,....

DBS chief sounds cautious note, but expects modest growth this year

SINGAPORE (Feb 18): Looking to the future, DBS CEO Piyush Gupta sounded a cautious note. For one, mortgage bookings have fallen by 30% to 40% since additional cooling measures were announced in July last year, he said. However, loan growth should continue and is likely to come from the corporate sector. See also: DBS reports 8% rise in 4Q earnings to $1.32 bil; brings FY18 earnings to new record high “We guided for mid-single digit loan growth and we are keeping to this loan growth estimate. I anticipate we will still see choppy markets and macro-economic slowdown,” Gupta says. Among....