News: First Sponsor rights issue oversubscribed

Jun 3, 2019

First Sponsor will use the proceeds to finance expansion plans. 

The $147.6 million rights issue of First Sponsor Group had been oversubscribed.

This comes as the mainboard-listed property developer received a total of 117.12 percent of valid acceptances and excess applications for the 113.6 million convertible securities with warrants available at the close of rights issue on 24 May, reported The Business Times.

First Sponsor had previously said that it will use the proceeds from the rights issue to finance expansion plans.

The rights issue will see shareholders receive 3.98 percent subordinated perpetual convertible securities that are pegged at $1.30 each. The perpetual securities could be exchanged for common shares, which come with an initial conversion price of $1.30 each.

Shareholders will also enjoy a bonus issue of one warrant for every 10 existing common shares that they hold.

But while the company did not provide the subscription rate for the bonus issue, it noted that 79.2 million warrants will be issued under it.

First Sponsor issued the convertible securities and warrants for the rights issue and bonus issue on 31 May, which are expected to be quoted and listed on the mainboard of the Singapore Exchange from 4 June.

The key controlling shareholders of First Sponsor are Hong Leong Group Singapore, via its shareholding interests in Millennium & Copthorne Hotels, as well as Tai Tak Estates Sendirian Berhad.

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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email

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