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SIA capital raising undersubscribed
June 21st 2021
Singapore Airlines' (SIA) latest capital raising has been undersubscribed, figures released by the company showed. Read More » The airline said in a regulatory filing to the Singapore Exchange valid acceptances and excess applications at the close of the rights issue represented about 60.6% of the S$6.2 billion (US$4.6 billion) sought from the sale of mandatory convertible bonds (MCB) bonds, or S$3.8 billion. The figures included S$3.4 billion taken up by major shareholder, Temasek Holdings and its subsidiary, Napier Investments. Under the terms of the rights issue, Tembusu Capital, another Temasek subsidiary, will take up the S$2.4 billion worth of MCBs that were unsubscribed, ensuring SIA can raise the full S$6.2 billion. SIA has said previously the funds would be used for operating cash flow (S$2 billion), capital expenditure (S$2.7 billion) and other commitments such as debt servicing and contractual payments (S$1.5 billion). "The company wishes to thank shareholders for demonstrating their support for the company by participating in the rights issue and enabling the successful completion of the rights issue," SIA said. "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."
