First Sponsor Group Limited on Aug, 3 2026 announced a renounceable, non-underwritten rights issue of up to 332.6 million Singapore dollars in 4.85 per cent perpetual convertible capital securities, designated Series 3 Tranche 2 and priced at 1.08 Singapore dollars each.

Eligible shareholders will receive one security for every five existing ordinary shares held on a record date to be announced; fractional entitlements will be disregarded. The new tranche will be consolidated with the 244.0 million Singapore dollars of Series 3 Tranche 1 securities issued on Sep, 30 2024, forming a single series.

Each security is convertible into one new share at an initial conversion price of 1.08 Singapore dollars, representing a 13.09 per cent premium to the volume-weighted average and closing price of 0.955 Singapore dollars on Jul, 30 2026.

If fully subscribed, gross proceeds are expected to reach 332.6 million Singapore dollars, with net proceeds of about 331.8 million Singapore dollars after expenses. The company plans to use approximately 145.52 million Singapore dollars to repay borrowings linked to its recent Amsterdam hotel acquisitions, about 13.32 million Singapore dollars to repay borrowings for the Dutch Bilderberg portfolio purchase, and around 173.0 million Singapore dollars to fund further expansion of its property holding, development and financing businesses.

United Overseas Bank Limited is acting as manager. The issue is not underwritten. Major shareholders First Sponsor Capital, Tai Tak Asia Properties and Chengdu Tianfu Properties, holding a combined 47.6 per cent stake, have provided irrevocable undertakings to subscribe in full for their entitlements, while controlling shareholder City Developments Limited has indicated it will not take up its allotment.

The rights issue remains subject to in-principle approval from Singapore Exchange and the lodgment of an offer information statement with the Monetary Authority of Singapore.