Pioneer Global Group's rights issue of 250.89 million new shares - equivalent to half the company's existing share capital - was 78.44 per cent subscribed with substantial shareholders buying the rest. For every two shares held investors were entitled to one new share under the issue which raised HK$163 million. The company received applications for 196.8 million shares with the remaining 54.09 million bought by chairman Rosanna Wang Gaw and her son, managing director Kenneth Gaw, who underwrote the offer. The Gaws bought 133.11 million shares including those to which they were entitled as shareholders and through the underwriting agreement. After the offering Mrs Gaw's stake in the company increased from 17.69 per cent to 24.48 per cent and Mr Gaw's from 4.26 per cent to 4.66 per cent. Substantial shareholders will now hold a 60.24 per cent stake in the company compared with 53.05 per cent before the rights issue. Early last month, when the rights issue was announced Pioneer's shares were trading at 90 HK cents but have since fallen 34.4 per cent to 59 HK cents. Pioneer was restructured over the last year to focus on technology ventures. Proceeds of the issue will be used to fund its Global Gateway venture with a fund managed by investment bank Morgan Stanley. Global Gateway will operate specialised centres across Asia, called carrier hotels, where telecommunications and Internet companies can store their servers and other equipment. Global Gateway was set up in May with initial equity capital of US$200 million. Morgan Stanley Real Estate Funds owns 80 per cent and Pioneer the rest.