Luminor Financial (SGX:5UA) is proposing to undertake a non-renounceable, non-underwritten rights issue for up to 167.4 million shares at SG$0.05 per share, according to a Monday filing with the Singapore Exchange.
The issue is an option for shareholders to buy one right share for every ordinary share they currently own.
The company's controlling shareholder, Kwan Chee Seng, is currently owed SG$8 million in shareholder loan, and has committed to using this debt to pay for his new shares.
The move will allow the company to improve its debt ratio, reduce interest costs, and conserve cash for business growth.
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