TA Corporation Ltd. Issues 70 Million New Shares Following Convertible Notes Conversion

Key Shareholder Update: Significant Increase in Share Capital and Potential Impact on Share Value

TA Corporation Ltd. (“the Company”) has announced a major development that could significantly impact its share price and shareholder value. The Company has completed the allotment and issuance of 70,006,380 new ordinary shares (“TAC Conversion Shares”) in its capital, following the conversion of its TAC Convertible Notes.

Key Points from the Announcement

• Issuance of TAC Conversion Shares: On 10 March 2026, the Company allotted and issued a total of 70,006,380 new ordinary shares to Phillip Securities Pte Ltd, which was elected as the holder of these shares by the liquidators of Tiong Aik Construction Pte Ltd (in liquidation), namely Mr. Lin Yueh Hung and Mr. Ng Kian Kiat of Messrs RSM Corporate Advisory Pte. Ltd.
• Conversion Price: The shares were issued at a conversion price of S\$0.073 per share, in accordance with the terms of the TAC Convertible Notes.
• Increase in Share Capital: Following this allotment, the Company’s total issued shares (excluding treasury shares and subsidiary holdings) have increased from 521,525,200 to 591,531,580. This represents a significant dilution of approximately 13.4% to the existing shareholders.
• Parity with Existing Shares: The newly issued TAC Conversion Shares will rank pari passu (on equal footing) in all respects with the existing ordinary shares of the Company.
• Listing Date: The TAC Conversion Shares are expected to be listed and quoted on the Mainboard of the SGX-ST, effective from 9.00 a.m. (Singapore time) on 12 March 2026.

Important Shareholder Considerations

• Potential Price Sensitivity: The substantial increase in the issued share capital could have a dilutive effect on the value of existing shares. Current shareholders should be aware that their proportional ownership in the Company will decrease as a result of this issuance.
• Liquidity Impact: The new shares will increase the free float and liquidity of TA Corporation Ltd. shares, potentially attracting more trading activity.
• Background and Reason for Issuance: The shares were issued following the conversion of TAC Convertible Notes, in accordance with previous announcements and after receiving approval-in-principle from the Singapore Exchange Regulation.
• Involvement of Tiong Aik Construction Pte Ltd (in liquidation): The choice of Phillip Securities Pte Ltd as the holder of the new shares was made by the liquidators of Tiong Aik Construction Pte Ltd, indicating a link between the conversion process and the ongoing liquidation proceedings.

Summary

This development is significant for TA Corporation Ltd. shareholders as it marks a major increase in share capital and results in immediate dilution for all existing shareholders. The listing of the new shares may lead to increased trading volumes, but could also put downward pressure on the share price due to the dilution effect.

Shareholders are advised to closely monitor both the trading activity following the listing of the new shares and any further announcements from the Company regarding its capital structure and business outlook.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult their financial advisors before making any investment decisions. The author and publisher are not responsible for any losses arising from reliance on this information.

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