GSS Energy Limited, a Singapore-based company, has announced a renounceable non-underwritten rights issue to raise capital. This move will allow shareholders to subscribe to additional shares at a discounted rate. The rights issue, which involves up to 607,222,761 new ordinary shares, is expected to have significant implications for existing shareholders and could influence the company’s stock price. Below are the key details and potential impact of this development.

Key Highlights of the Rights Issue

• Issue Price: S\$0.013 per Rights Share, a discounted rate aimed at attracting shareholder participation.
• Entitlement Ratio: Shareholders are entitled to subscribe for 9 Rights Shares for every 10 existing shares held as of the Rights Issue Record Date.
• Total Shares Offered: Up to 607,222,761 Rights Shares will be issued, with fractional entitlements disregarded.
• Use of Proceeds: While not explicitly stated in this announcement, rights issues are typically used to strengthen the company’s capital base, fund growth initiatives, or reduce debt.

Important Dates for Shareholders

• Offer Information Statement Lodgement: 13 December 2024
• Despatch of Notification Letters: 16 December 2024
• Rights Trading Period: From 9:00 a.m. on 16 December 2024 to 12:00 p.m. on 24 December 2024
• Last Date for Acceptance and Payment: 30 December 2024 at 5:30 p.m. (or 9:30 p.m. for electronic applications via ATMs of Participating Banks)
• Expected Issuance of Rights Shares: 7 January 2025
• Expected Listing and Trading of Rights Shares: 8 January 2025 at 9:00 a.m.

Actions Required by Shareholders

Shareholders must carefully follow the outlined procedures to accept their provisional allotments or apply for excess Rights Shares. Here’s what different types of investors need to do:

• Entitled Depositors: Accept allotments via CDP or apply electronically through ATMs of Participating Banks.
• Entitled Scripholders: Submit acceptance forms through the Share Registrar, Boardroom Corporate & Advisory Services Pte. Ltd.
• Purchasers of Rights: Ensure timely applications through the appropriate channels, as documents might not be despatched in time for last-minute trading.
• SRS Investors and Depository Agent Holders: Applications must be made through respective SRS Approved Banks, finance companies, or Depository Agents. Direct applications to CDP or ATMs will be rejected.

Foreign Shareholders and Purchasers with non-Singapore addresses will not be eligible to participate in the Rights Issue due to regulatory constraints.

Potential Impact on Share Price

The discounted issue price of S\$0.013 per Rights Share is likely to influence the market sentiment around GSS Energy’s stock. On one hand, the capital raised could strengthen the company’s financial position, which might be viewed positively by investors. On the other hand, the dilution of existing shareholdings could exert downward pressure on the stock price in the short term. The overall impact will depend on the level of shareholder participation and the market’s perception of how the funds will be utilized.

Conclusion

GSS Energy’s rights issue represents a significant corporate action with implications for its shareholders and stock price. Investors are strongly encouraged to review the Offer Information Statement available on the SGX website and the company’s corporate website. Timely action is essential to participate in the rights issue or to trade the provisional allotments.