Singapore-based Jardine Matheson was left to pick up the pieces of associate Mandarin Oriental's latest fund-raising attempt, a $150 million rights issue, as independent investors shunned the latter's old economy paper, preferring to chase the high-tech hopefuls of the internet age.
The fund-raising comprised a one-for-five issue of new shares at S$0.510 that saw 75% take-up and a convertible bond issue - one $5,000 bond for every 48,000 existing shares held - which was 65% subscribed. The shares were underwritten by Mandarin Oriental parent Jardine Strategic, a subsidiary of Jardine Matheson, while the convertible was underwritten by Jardine Fleming, the group's investment banking associate.
Excluding the Jardine Matheson group of...
