SIA halted yesterday and has resumed today with an announcement for more cash through a mixture of rights issue and convertible bonds. A few friends came asking if it is attractive (opportunity to enter at $3) since it is our national airlines with the government backing/support right? I glanced through the announcement, there was no fundamentals/numbers presented, so I decided to calculate them instead and have extracted the important information below.


The rights shares will be issued at an issue price of S$3.00 for each Rights Share (the “Issue Price of the Rights Shares”) on the basis of three (3) Rights Shares for every two (2) existing ordinary shares.

The Issue Price of the Rights Shares represents a discount of approximately 53.8 per cent. to the last transacted price of the Shares on the Official List of the SGX-ST of S$6.50 on 25 March 2020, being the last trading day on which trades...