According to Markit, the short interest in ARA Asset Management rose by more than 1,000% for the week beginning Nov 16.
Since then, ARA’s share price is down 7.7%. The company announced a renounceable rights issue of 152.13 million shares an 18-for-100 rights issue on Nov 11, at $1.00 to raise $152.13 million.
The major shareholders John Lim who owns 19%, Straits Trading Company with 20.1% and Cheung Kong Property Holdings with 7.84% have given irrevocable undertakings to subscribe for their share, which amount to more than 47% of the rights issue.
Since the announcement of the rights issue, prices have been trading below the company’s theoretical ex-rights price of $1.356, which may have prompted some shareholders to sell or short the counter to buy back at a lower price.
Out of the rights proceeds, $60 million will be used to pay a Straits Trading loan that was used to fund ARA’s investment in Suntec REIT in May. The remaining $89.6 million will be used to seed new funds.
ARA last traded at $1.20.
Short interest in United Overseas Bank rose by 843% in the week starting Nov 16.
This is probably part of hedge funds’ programme selling of the banks. In August, the hedge funds programme selling started with DBS Group Holdings before spreading to UOB and Oversea-Chinese Banking Corporation. Aberdeen Asset Management has divested its stake in OCBC to below 5%.
Elsewhere, Aberdeen Asset Management has been selling City Developments due to fund redemption. It still holds over 18%, down from 22% in March.
Separately CWT has sold its stake in Cache Logistics Trust to below 5%.
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Since then, ARA’s share price is down 7.7%. The company announced a renounceable rights issue of 152.13 million shares an 18-for-100 rights issue on Nov 11, at $1.00 to raise $152.13 million.
The major shareholders John Lim who owns 19%, Straits Trading Company with 20.1% and Cheung Kong Property Holdings with 7.84% have given irrevocable undertakings to subscribe for their share, which amount to more than 47% of the rights issue.
Since the announcement of the rights issue, prices have been trading below the company’s theoretical ex-rights price of $1.356, which may have prompted some shareholders to sell or short the counter to buy back at a lower price.
Out of the rights proceeds, $60 million will be used to pay a Straits Trading loan that was used to fund ARA’s investment in Suntec REIT in May. The remaining $89.6 million will be used to seed new funds.
ARA last traded at $1.20.
Short interest in United Overseas Bank rose by 843% in the week starting Nov 16.
This is probably part of hedge funds’ programme selling of the banks. In August, the hedge funds programme selling started with DBS Group Holdings before spreading to UOB and Oversea-Chinese Banking Corporation. Aberdeen Asset Management has divested its stake in OCBC to below 5%.
Elsewhere, Aberdeen Asset Management has been selling City Developments due to fund redemption. It still holds over 18%, down from 22% in March.
Separately CWT has sold its stake in Cache Logistics Trust to below 5%.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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