Strong demand for Chartered Semiconductor's rights issue

Chartered Semiconductor Manufacturing has become the latest Asian company to successfully raise fresh equity capital from a rights issue, allowing it to cover its maturing debt obligations and fund future capital expenditure, among other things.

The Singapore-based chip maker said on Thursday that its S$464 million $300 million offer was 144% subscribed, including excess applications. This means that Temasek, Chartered's controlling shareholder, will buy only its proportional entitlement and that its stake in the company will remain unchanged at 59.4%.

It also means that none of the rights issues in Asia year-to-date have had to put their underwriting commitments to the test, as they have all been fully subscribed by existing shareholders or by investors...