Raffles Education mulls issuing over 170m rights shares

Part of the net proceeds will be used for the repayment of loans.

The Board of Directors of Raffles Education announced that the company is proposing to undertake a renounceable non-underwritten rights issue of up to 170,893,872 rights shares at an issue price of S$0.14 for each rights share.

Entitled shareholders will be at liberty to accept, decline or otherwise renounce or trade theirs provisional allotment of rights shares and are eligible to apply for additional rights shares in excess of their provisional allotments under the rights issue.

For practical reasons and in order to avoid any violation of relevant legislation applicable in countries other than Singapore, Raffles Education said the rights shares will not be offered to shareholders with registered addresses outside Singapore.

Raffles Education added that the issue price of S$0.14 for each rights share represents a discount of more than 60% from the price of S$0.365 per share on the SGX-ST on 24 August 2012, being the last transacted price before the announcement.

The Company intends to apply the net proceeds raised from the rights issue for the repayment of loans, investment in education institutions, and general working capital purposes.