ffer Information Statement (OIS) lodged with the Monetary Authority of Singapore is dated 14 January 2020. You are d
On 18 December 2019, Japfa Limited, an industrial agri-food company listed on the Singapore Exchange (SGX) announced a proposal to raise funds via a rights issue. The stock closed at $0.575 that day, and the announcement was made after the market close. The Offer Information Statement (OIS) lodged with the Monetary Authority of Singapore is dated 14 January 2020. You are discussing this rights issue with a friend. Use the information on the rights issue from the OIS, which can be retrieved from the SGX website, to answer the following questions:
Offer Information Statement (OIS):
https://links.sgx.com/FileOpen/Japfa%20Limited%20Offer%20Information%20Statement%20dated%2014%20January%202020.ashx?App=Prospectus&FileID=41859
a) Someone says that the subscription price discount is small because shares that are not subscribed by existing shareholders will be taken up by DBS Bank Limited. Assess this statement, quantitatively if applicable.
For part 1, why that person says that the discount is small is because of the above reason? I dont understand what are affecting the discount, I am very confused by this question....how to answer this question?
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