Asia-Pacific Strategic Investments Limited Cancels Proposed Rights Issue of 17.8 Billion Shares

Key Points from the Announcement

• Cancellation of Proposed Rights Issue: Asia-Pacific Strategic Investments Limited (“the Company”) has decided not to proceed with its previously announced non-renounceable rights issue, which would have offered up to 17,828,696,279 new ordinary shares.
• Initial Announcement Dates: The rights issue was originally announced on 14 February 2025 and updated on 5 March 2025.
• Reason for Cancellation: The Board reviewed the Group’s funding requirements for its proposed new real estate development business and determined that, given current operating cash flows and committed financing facilities, there is no immediate need for additional equity capital.
• Share Suspension: The Company’s shares are currently suspended, significantly impairing the effectiveness of any equity fund-raising exercise and creating uncertainty regarding investor participation and subscription levels.
• Cost Considerations: The Board cited the desire to avoid incurring further administrative, professional, and compliance-related expenses associated with the rights issue, given the current market and operational circumstances.
• Alternative Funding: The Group intends to continue evaluating other financing options that may present more favorable terms and better align with its business strategies.
• Internal Funding: The Company stated that its immediate needs for working capital and loan repayments can be met using internal resources without affecting ongoing operations.
• Discontinuation of Related Actions: All actions related to the rights shares, including provisional allotments, acceptances, and excess applications, will be discontinued.
• Shareholder Communications: The Company will keep shareholders informed regarding material developments, alternative funding plans, and strategic initiatives through further announcements as required by the Catalist Rules.

Important Information for Shareholders

• Share Price Sensitivity: The cancellation of a major rights issue can be highly price-sensitive, as it signals that the Company does not require immediate external equity financing and believes its internal resources are sufficient. This may be interpreted positively by some investors as a sign of financial stability, or negatively by others due to the ongoing suspension and uncertainty over future funding.
• Ongoing Share Suspension: The suspension of trading in the Company’s shares remains in effect. Investors should be aware that this limits liquidity and market activity and may impact valuation.
• No Further Actions Required: Shareholders do not need to take any action in relation to the previously announced rights issue. All ongoing activities related to the rights shares have been discontinued.
• Cautionary Statement: The Company expressly advises all shareholders and potential investors to exercise caution when dealing in the Company’s shares. It is recommended that investors consult their financial advisors if they are uncertain about their next steps.
• Future Updates: The Board has committed to updating shareholders on any material developments, including alternative fundraising plans or strategic initiatives, via official announcements.

Potential Implications for Share Value

• Market Reaction: The cancellation of a major equity fundraising event, especially in the context of suspended shares, could influence investor sentiment and potentially move the share price (once suspension is lifted). The decision suggests the Company is prioritizing cost efficiency and operational prudence at this time.
• Funding and Growth Outlook: Investors may interpret the reliance on internal resources as a sign of strong cash flow management, but may also question long-term growth prospects and the ability to finance future expansion without external capital.
• Strategic Direction: The announcement signals a shift in strategy regarding financing and possibly timing of expansion plans in the new real estate development business.

Directors and Sponsor Statement

The announcement was authorized by Lead Independent Director, Mr. Lien Kait Long, and reviewed by the Company’s sponsor, PrimePartners Corporate Finance Pte Ltd. The Singapore Exchange Securities Trading Limited has not examined or approved the contents of this announcement and assumes no responsibility for its accuracy.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors are strongly encouraged to consult their stockbrokers, bank managers, solicitors, accountants, tax advisers, or other professional advisers before taking any action. The information is based solely on official Company announcements and may be subject to change as further disclosures are made.

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