After weeks of market rumours of a rights issue, Capitaland finally announced their  Capitaland rights issue yesterday. S$1.84 billion of capital will be raised through a rights issue at a price of $1.30 per share (At the same time, Capitaland also announced that their subsidairy, CapitaMall Trust, will be raising S$1.23 billion though their own rights issue).

Shareholders will be able to subscribe for 1 rights share for every 2 Capitaland shares that they own. The rights are renounceable (which means shareholders can sell them if they do not want to subscribe).

Key dates are as follows:

Shares trade ex-rights: 19th Feb 2009 from 9am

Despatch of offer document: 26th Feb 2009

Commencement of trading of Rights : 26th Feb 2009 at 9am

Last day of trading of rights: 6th March 2009 at 5pm

Last day and time for acceptance and payment for Rights Shares : 12th March 2009 at 5pm (930pm for electronic)

Last date and time for application and payment for excess Rights Shares : 12th March 2009 at 5pm (930pm for electronic)

Expected date of trading of Rights Shares : 23rd March 2009

If you are a Capitaland shareholder, it is imperative that you either sell off your rights (if you do not wish to subscribe) or subscribe to the rights. If you do neither, you would have lost the opportunity to recoup some money from the selling of your rights. Read more…