Lai Sun Development issue undersubscribed

Lai Sun Development yesterday announced its $884 million rights issue was just 94.4 per cent subscribed. The company said in accordance with the underwriting agreement, its underwriters - HSBC Investment Bank and ICEA Capital - would take up, or procure subscribers to take up, the remaining 98.94 million shares. This represents 2.8 per cent of Lai Sun's enlarged issued share capital. Lai Sun said as at 4pm on Thursday, it had received valid acceptances for 1.44 billion rights shares and valid applications for 228.6 million excess rights shares. Lai Sun last month proposed a one-for-one rights issue at 50 cents per share, which represents a 90.1 per cent discount to the adjusted net tangible asset value of $5.07 per share.