HG Metal Manufacturing’s Strategic Rights Issue: A Game Changer for Shareholders
HG Metal Manufacturing Limited has announced a proposed renounceable non-underwritten rights issue, aiming to issue up to 74,254,237 new ordinary shares at an issue price of S\$0.266 per share. This initiative is set on the basis of ten Rights Shares for every 27 existing shares held, as of the Record Date, which is scheduled for 21 November 2024 [[1]].
Key Details and Dates
The company has stipulated that the Register of Members and the Share Transfer Books will close at 5.00 p.m. on the Record Date to determine shareholders’ eligibility for the Rights Issue. Shareholders must ensure their registered addresses with the company or The Central Depository (Pte) Limited (CDP) are in Singapore to qualify as “Entitled Shareholders” [[1]].
Trading Information
It is crucial for shareholders to note that shares will trade on a “cum-rights” basis on the SGX-ST until 5.00 p.m. on 19 November 2024. From 9.00 a.m. on 20 November 2024, shares will trade on an “ex-rights” basis, meaning purchasers from this date will not be entitled to the Rights Shares [[2]].
Eligibility Criteria for Participation
The rights issue is open only to Entitled Shareholders, comprising Entitled Depositors and Entitled Scripholders. Entitled Depositors are those whose shares are credited in their securities accounts with CDP, while Entitled Scripholders hold shares in their own names [[2]].
Exclusion of Foreign Shareholders
Foreign Shareholders, those with registered addresses outside Singapore, are not eligible to participate due to potential legal restrictions. This includes a prohibition on the distribution of the Offer Information Statement outside Singapore [[2]].
Implications for Shareholders
The rights issue is a significant move by HG Metal Manufacturing to raise capital. It is imperative for shareholders to consider the implications of the rights issue on their holdings and make informed decisions regarding their participation [[3]].
Further Announcements
The company will release additional details in the Offer Information Statement, to be disseminated to Entitled Shareholders. HG Metal Manufacturing will continue to provide updates on material developments regarding the Rights Issue [[3]].
BY ORDER OF THE BOARD
HG METAL MANUFACTURING LIMITED
Xiao Xia, Executive Director and Chief Executive Officer
13 November 2024 [[3]].
Disclaimer: This article is for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities. Shareholders are advised to read the full Offer Information Statement once available and consult with professional advisors if necessary.
