SINGAPORE - Water treatment company Moya Holdings Asia has launched a rights issue that could raise up to $132.5 million in net proceeds, if the rights are fully subscribed.

Moya has proposed to issue up to 1.4 billion new rights shares at $0.095 each, on the basis of one rights share for every two existing ordinary shares.

The issue price represents the last closing price of $0.095 per share as at May 21.

Tamaris Infrastructure, Moya's largest shareholder with a 68.9 per cent stake, has undertaken to fully subscribe for its entitlement under the rights issue.

If no other shareholder apart from Tamaris subscribes for the right issue, Moya will raise net proceeds of $90.7 million at the very least.

A bulk of net proceeds will be used repay an existing loan facility, Moya said.

The rest will be used to finance Moya's expansion through potential acquisitions, to develop BOT (Build-Operate-Transfer) projects in bulk water supply and water supply concessions in Indonesia, and for working capital.

Moya has a share capital of 2.8 billion shares and 10.4 million outstanding share options granted under its employee share option scheme which are exercisable into 10.4 million new shares.