Xpress Holdings proposes 2-for-5 rights issue to raise net proceeds of up to $13.1 million

Singapore-listed print management company Xpress Holdings is proposing a two-for-five renounceable underwritten rights issue that would raise up to $13.07 million in net proceeds.

It plans to issue up to 711.7 million new shares in the company at an issue price of two cents each, on the basis of two rights shares for every five ordinary shares currently held by shareholders.

The issue will be undertaken as part of the company's share issue mandate, which allows the company's directors to issue a certain amount of shares without needing to seek shareholders' approval.

Xpress, which is listed on the mainboard of the Singapore Exchange, said the issue price of two cents for each rights share represents a discount of about 47.4 per cent to the company's closing price of 3.8 cents per share on Monday.

Eligible shareholders can accept all or part of their allocation or decline it. They will also be able to apply for additional rights shares above their allotments.

The maximum net proceeds from the rights issue will be about $13.07 million, said Xpress. It plans to use more than half of the proceeds for business development and expansion, about a third to repay existing debts, and the rest for general working capital.