TrickleStar Secures Approval for Rights Issue – Potential Share Price Impact

Singapore-based TrickleStar Limited has announced a significant update on its proposed renounceable non-underwritten rights issue. The company disclosed that on 6 January 2025, it received the Listing and Quotation Notice (LQN) from the Singapore Exchange Securities Trading Limited (SGX-ST) for the listing and quotation of up to 67,426,073 Rights Shares, subject to compliance with SGX-ST’s listing requirements.

Key Highlights of the Announcement

• Approval Received: The LQN approval is a pivotal step for TrickleStar Limited’s rights issue, allowing the listing of the Rights Shares on the SGX-ST.
• Shareholder Impact: The rights issue is renounceable and non-underwritten, meaning shareholders will have the option to subscribe to the new shares or sell their rights in the open market.
• Number of Shares: Up to 67,426,073 Rights Shares are proposed to be issued, which could significantly impact the company’s share capital and potentially its stock price.
• Regulatory Compliance: The listing is contingent on meeting SGX-ST’s listing requirements.
• No Endorsement Implied: The SGX-ST LQN explicitly states that it should not be taken as an endorsement of the merits of the rights issue or the company’s securities.

What Shareholders Need to Know

The rights issue may have several ramifications for TrickleStar shareholders:

• Potential Dilution: Existing shareholders who choose not to participate in the rights issue may experience dilution of their shareholding.
• Market Sensitivity: The announcement and subsequent developments could impact share prices. Investors should monitor further updates closely.
• Opportunity to Participate: Shareholders will have the opportunity to subscribe to the new shares, potentially at a discount, or trade their rights in the market.

Further Announcements Expected

The company has stated that it will make further announcements as additional developments regarding the rights issue unfold. Shareholders are advised to stay updated on any new information that may affect their investment decisions.

Disclaimer

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors are encouraged to perform their own due diligence and consult with a qualified financial advisor before making any investment decisions. The Singapore Exchange Securities Trading Limited (SGX-ST) has not reviewed or approved the contents of the announcement referenced in this article.