In the announcement, Noble proposed a fully underwritten rights issue with net proceeds of about US$500 million.
The rights issue will comprise one rights share for every one Noble share, issued at S$0.11 apiece. This marks a 63 per cent discount to the closing stock price of S$0.30 on SGX on Thursday (the last trading day before the rights issue announcement), and a 46 per cent discount to the theoretical ex-rights price of S$0.205.
Mr Elman has given an irrevocable undertaking to procure subscriptions for 625.5 million rights shares (representing 9.6 per cent of the maximum number of shares to be issued), though this is less than his full entitlement through Noble Holdings Ltd.
China Investment Corporation (CIC), Noble's other key shareholder, has given a similar undertaking for 630.6 million rights shares (representing 9.6 per cent) for which it is entitled. The remainder of the rights issue has been underwritten by a consortium of banks comprising HSBC, Morgan Stanley Asia, DBS Bank, Société Générale and ING.
CW8888's Thought on this right issue
In investing over SHORT-TERM trading and LONG-TERM (multi-years) investing, our experience in the stock market is relative.
Our emotional pain, joy and unresponsiveness to stock price volatility is relative too.
What I learn from many years of fishing. Not all poisons kill!
Some see it half empty while others see it half-full.
Some feel so painful and can't bear it anymore while others still feel okay!
Their History behind every stocks they have "punt", trade or invest will tell a different story! What you see is not what you think! So be careful on following others!
The rights issue will comprise one rights share for every one Noble share, issued at S$0.11 apiece. To Uncle8888, just @ $0.11 apiece is like taking some feathers off his Pillow stock to dry in the Sun and these few feathers taken off may make it a better Pillow some years later.
The Past is not the Present. The Present is not the Future.
Portfolio management, cash management, and risk control are what we can do as retail investors. The rest of it leaves it to Mr. Market to fight it out!
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