Halcyon Agri to issue new ordinary shares at $0.22 apiece

This will be done on the basis of one rights share for every two existing ordinary shares.

Halcyon Agri Corporation Limited is proposing to undertake a renounceable non-underwritten rights issue of up to 797.51 million new ordinary shares to raise $174.7m, according to a filing. It has an issue price of $0.22 apiece.

This will be done on the basis of one rights share for every two existing ordinary shares held by the entitled shareholders. The company has appointed DBS Bank as the manager of the rights issue.

Halcyon notes that 75% of the net proceeds from the issue will be allotted to operating cash flows, whilst the remaining 25% will be distributed to other fixed commitments such as funding capital expenditures, servicing of term debts, and other fixed contractual payments.

If approved by shareholders, the share issue mandate will authorise the directors to allot and issue shares of up to 50% of the total number of issued shares as of the date of the annual meeting.

The company’s major shareholder, Chinese state-owned enterprise Sinochem International, is said to subscribe for its pro rata entitlement to the rights shares. Sinochem has an interest in an aggregate of 877.06 million shares, representing approximately 54.99% of the total number of issued shares.

However, Halcyon notes that the right shares will not be offered to shareholders with registered addresses outside Singapore. Entitlements to rights shares for foreign shareholders will be sold “nil-paid” on the SGX-ST after dealings in the provisional allotments of rights shares commence.