SINGAPORE (Dec 27): SingHaiyi Group is selling up to 1.435 billion new shares at 10 cents each.

The issue price of 10 cents represents a discount of 11.8% to the theoretical ex-rights price of 11.3 cents each, says the property group in a Tuesday night filing.

As at 10.50am, shares in SingHaiyi are trading at 12 cents.

The rights issue is to raise proceeds to pursue property investments and for general corporate and working capital purposes.

Shareholders will be entitled to one rights share for every two existing shares held.

SingHaiyi says the rights issue will help to strengthen the group’s financial position by augmenting the group’s balance sheet and capital base, and reducing the net gearing of the group.

About 70% to 90% of the net proceeds of $143.16 million will be used for property investments while 10% to 30% will be for generate corporate and working capital.

Haiyi Holdings, wholly-owned by SingHaiyi's controlling shareholders Gordon Tang and wife Celine that owns 1.61 billion shares or a 56.17% stake, has provided an irrevocable undertaking to subscribe to its entitled rights shares.