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Swiber seeks to raise $35m from rights issue

Swiber seeks to raise $35m from rights issue
Swiber Holdings has proposed to undertake a rights issue to raise approximately SGD45.9m ($34.6m) for working capital.

The rights issue will see up to 305,693,000 new ordinary shares of the company issued at an issue price of SGD0.15 for each rights share on the basis of one rights share for every two existing ordinary shares.

Swiber said the rights issue is expected to “strengthen its balance sheet and provide the company with greater financial flexibility” as well as “increase the trading liquidity through the increase in the total number of shares in issue.”

The proposed issue price of SGD0.15 is at a discount of about 49.2% to Swiber’s last traded price of SGD0.295 per share on 30 December 2014, and discount of approximately 39.2% to the theoretical ex-rights price of SGD0.247 per share.

Investment holding firm Newshire Capital and Pang Yoke Min, chairman of Pacific Radiance, have agreed to subscribe for up to 152,846,500 rights shares representing 50% of the maximum number of rights shares.

As at 30 December 2014, Newshire Capital and Pang own 12.59% and 10.31%, respectively, of the existing issued share capital of Swiber.

Singapore-listed Swiber has appointed DBS Bank as the issue manager and underwriter for the rights issue.