Key Points for Investors:

1. Rights Issue Overview: HG Metal Manufacturing Limited is offering up to 74,254,237 new ordinary shares at S$0.266 per share. This is a renounceable, non-underwritten rights issue.

2. Offer Ratio and Price: The issue is based on 10 Rights Shares for every 27 existing shares held. The price of S$0.266 represents a 12.8% discount to the last traded price of S$0.305 on October 7, 2024.

3. Proceeds and Allocation: The company aims to raise approximately S$19.75 million, with proceeds allocated towards core business expansion (25-30%), working capital (35-40%), and strategic investments/acquisitions (30-40%).

4. Key Date: The record date for shareholder entitlements has not yet been announced. Investors should watch for the final dates and terms in the Offer Information Statement.

5. Support from Controlling Shareholder: Green Esteel, holding 29% of the shares, has provided an irrevocable undertaking to subscribe to its share of the rights issue and apply for excess rights shares.

6. Potential Dilution: Depending on subscription levels, Green Esteel’s shareholding may increase to 48.19%, potentially triggering a mandatory offer under Singapore’s takeover code.

Special Considerations:

• Investors should be aware of the discounts offered and the potential dilution effect on shareholding.
• The commitment by Green Esteel highlights strong backing, but caution is advised as mandatory takeover conditions may arise if subscription levels are low.

Investor Actions: Shareholders should stay alert for further announcements regarding the record date and offer information statement.