Further Discounts Ahead In Asia

CFW's prediction that Asian firms could increasingly be forced to look to discounted rights issues in order to raise capital (see 'DBS Group Rights Issue Highlights The Cost Of Success', CFW, February 3 2009) continues to play out, and February 10 saw similar moves by Singapore's largest property developer CapitaLand and CapitaMall Trust (CMT), with both firms hoping to raise a combined SGD3.07bn (US$2.05bn). CapitaLand is offering SGD1.84bn worth of shares in a 1 for 2 issue priced at SGD1.30 per share, a 45% discount to the SGD2.36 February 6 close. As with last week's issue by banking group DBS

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