Sinostar PEC Announces Renounceable Rights Issue: What Shareholders Need to Know

Sinostar PEC Holdings Limited has unveiled plans for a renounceable, non-underwritten rights issue to raise capital, offering shareholders the opportunity to acquire additional shares at a discounted rate. This development has the potential to impact the company’s share price and warrants attention from investors.

Key Highlights of the Rights Issue

• The company plans to issue up to 320,000,000 new ordinary shares, representing one Rights Share for every two existing shares held by shareholders.
• The issue price for each Rights Share is set at S\$0.14, a price that is likely to be lower than the prevailing market price, making it attractive to investors.
• The Rights Issue is renounceable, meaning shareholders can choose to accept, decline, or trade their provisional allotments of Rights Shares.

Important Dates for Shareholders

• Record Date: 11 February 2025, at 5:00 PM. Only shareholders registered by this date will be entitled to participate.
• Shares will trade on a “cum-rights” basis until 7 February 2025 and on an “ex-rights” basis from 9:00 AM on 10 February 2025.

Eligibility Criteria

Shareholders should be aware of the following eligibility requirements:

• Entitled Shareholders: Shareholders with registered addresses in Singapore are eligible to participate. They may accept their allotments in full or in part, renounce them, or trade them on the SGX-ST during the provisional allotment trading period.
• Foreign Shareholders: Shareholders with registered addresses outside Singapore are not eligible to participate. Any provisional allotments to Foreign Shareholders may be sold “nil-paid” on the SGX-ST, with net proceeds distributed if the amount exceeds S\$10.00.
• CPF and SRS Investors: Shareholders who purchased shares using CPF or SRS funds may use these accounts to pay for their Rights Shares and apply for excess shares.

Potential Impact on Shareholders and Stock Value

The discounted issue price of S\$0.14 per Rights Share could drive increased participation from eligible shareholders, potentially affecting the company’s share price in the short term. However, the success of the Rights Issue is not guaranteed, as it remains subject to certain conditions. Shareholders and potential investors are advised to exercise caution when trading in the company’s securities during this period.

Additional Information

Further details about the Rights Issue, including instructions for participation, will be provided in the Offer Information Statement, which will be electronically disseminated to entitled shareholders. The company has committed to making additional announcements regarding the progress and material developments of the Rights Issue.

Cautionary Statement

Sinostar PEC Holdings Limited has emphasized that the Rights Issue is subject to certain conditions, and there is no assurance at this stage that it will be completed. Shareholders and investors are urged to monitor the company’s announcements closely and consult their financial advisors if they have any concerns or doubts about their investment decisions.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Readers are encouraged to conduct their own research or consult professional advisors before making any investment decisions.