Duty Free International Ltd, a Singapore-listed unit that is 75.53% owned by Atlan Holdings Bhd, has proposed a renounceable rights issue of warrants.
The duty-free retail operator said in a Singapore Exchange filing that it plans to issue up to 399.4 million warrants on the basis of one warrant for every three existing shares. The proceeds will be used for working capital and future growth plans.
The warrants will have a five-year exercise period, an issue price of 0.1 Singapore cent each, and an exercise price of 8.5 Singapore cents, bringing the total to 8.6 Singapore cents — a 17.8% premium to its last closing price.
Duty Free International said the fundraising will strengthen its financial position and provide flexibility to support expansion opportunities.
It expects to raise about S$200,000 (RM617,890) from the subscription, while full exercise of the warrants could generate up to S$33.9 million (RM104.73 million).
The warrants will not be underwritten, but parent company Atlan has undertaken to subscribe to its entitlement and any remaining unsubscribed portion.
Duty Free International said it has not carried out any equity fundraising in the past 12 months.
Atlan shares closed 1.75% lower at RM2.80 on Thursday, valuing the group at RM710.22 million.
