HG Metal Manufacturing Limited Announces Rights Issue: Key Details for Shareholders

HG Metal Manufacturing Limited has disclosed a renounceable non-underwritten rights issue of up to 74,254,237 new ordinary shares. The shares are priced at S\$0.266 each, offered on the basis of ten rights shares for every twenty-seven existing shares held. This announcement follows previous communications from the company made in October and November 2024.

Key Points for Shareholders:

• Important Dates: The rights issue will see the dispatch of notifications to entitled shareholders on 26 November 2024. Trading of “nil-paid” rights shares will start the same day and end on 4 December 2024. Acceptance and payment for rights shares must be completed by 10 December 2024, with the issuance of rights shares expected by 16 December 2024 and trading commencing on 18 December 2024.
• Participation Restrictions: Foreign shareholders will not be eligible to participate in this rights issue. This is to avoid any contravention of securities legislation in jurisdictions outside Singapore.
• Access to Information: Hard copies of the Offer Information Statement will not be distributed. Shareholders can access the information via the company’s website or the SGXNet announcement page.

Potential Impact on Share Price:

The rights issue could affect the share price of HG Metal Manufacturing Limited. Shareholder participation levels, combined with the new shares’ pricing relative to the market, may influence trading behavior.

Shareholder Action Required:

Shareholders are encouraged to review the Offer Information Statement for detailed participation instructions. Entitled Depositors and Scripholders should follow the specified procedures to accept and pay for their rights shares. Those who wish to apply for excess rights shares should also adhere to the outlined guidelines.

Trading and Compliance:

The trading period for “nil-paid” rights shares offers an opportunity for shareholders to sell their rights. However, foreign participants are urged to ensure compliance with their local securities laws, as the company reserves the right to reject any applications that may breach these regulations.

This rights issue represents a significant event for HG Metal Manufacturing Limited, and shareholders should consider the implications on their holdings and the potential for share price movement.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Shareholders are advised to consult with their financial advisors regarding participation in the rights issue.

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