Koon Holdings Limited is giving a 3 rights for every 5 shares at S$0.19 for each rights.
Basic info
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1) Current ordinary shares (OS): 164,208,000
2) $16,324,000 cash and fixed deposits. This works out to $0.099 cash per OS
3) $52,842,000 total equity. This works out to NAV of $0.32
4) Current share price: $0.205
5) Rights issue shares: 98,524,800
Valuation
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Assuming the current share price of $0.205 better reflects the true enterprise value (EV) of the share
rather than the cash per OS or NAV.
Assuming full subscription of the rights issue,
EV of each share after rights issue will be ((3 x $0.19) + (5 x $0.205))/8
= (0.57 + 1.025)/8
= 1.595/8
= $0.199375
Thus the fair value of 1 rights will be $0.199375 - $0.19 = $0.009375
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