The proposed rights issue of mainboard-listed Innopac Holdings has been terminated with immediate effect, after the Singapore Exchange (SGX) rejected the company's application for the additional listing of the rights shares.
Innopac in June had proposed to undertake a renounceable non-underwritten rights issue of up to 5.05 billion new shares at an issue price of 0.08 cent for each rights share. The aim was to raise funds for business expansion and to improve its working capital position.
The company said in a statement yesterday that the additional listing was rejected as the theoretical share price post proposed rights issue and the theoretical share price of the nil-paid rights are less than the minimum trading price of 0.1 cent.
The SGX told Innopac: "Shareholders who do not take up their rights entitlements will suffer significant dilution in shareholding percentage and financially, and will not have the ability to monetise their entitlements through the trading of nil-paid rights."
ESR-Reit has posted a 2.3 per cent drop in distribution per unit for the third quarter to 0.964 cent.
Net income available for distribution for the three months to Sept 30 dipped 2 per cent to $12.6 million, while gross revenue was down by 1.9 per cent to $27.1 million.
Net property income slid 1.6 per cent to $19.6 million as income from new leases helped to partially offset the loss of revenue during the conversion of properties from single-tenanted to multi-tenanted, said the manager in a statement yesterday. Higher property operating expenses as a result of the conversions, increased maintenance costs and property divestments were also a drag.
Earnings per unit came in at 0.93 cent, lower than the 0.99 cent previously, while net asset value per unit was 63.2 cents as at Sept 30, compared with 63.4 cents as at Dec 31 last year.
More than 1.08 million sq ft of space was renewed during the quarter, with an occupancy rate of 91.1 per cent and weighted average lease expiry of 3.4 years.
The occupancy rate was lower than that in the previous quarter due to the inclusion of 120, Pioneer Road into the occupancy calculation and the impact of the non-renewal of the CWT lease at 3, Pioneer Sector 3. "Good progress is being made towards leasing out the spaces at both buildings," said the manager.
ESR-Reit units closed flat at 58 cents yesterday, before the results were announced.