Tiger Airways (Tigerair) announced this morning that its rights issue was fully subscribed at the close of the rights issue on 29-Dec-14. Valid acceptances and excess applications were received for 1,797,426,548 rights shares, which represented 156.7% of the 1,147,102,770 rights shares available for issuance. This include a total of 1,147,112,005 rights shares accepted, or applied for by Singapore Airlines (SIA), comprising its pro-rata entitlement of 640,236,559 rights shares and 506,875,446 excess rights shares.

Excluding SIA, valid acceptances and applications for excess rights shares received from other shareholders (650,314,543 rights shares) represented 128.3% of their total pro-rata entitlement to rights shares (506,866,211 rights shares). Hence, based on the enlarged issued share capital of Tigerair of 2,496,635,441 shares post the rights issue, SIA’s stake remains to be 55.8% while other shareholders’ stake forms the remaining 44.2%.

Bearing in mind that we expect depressed yields in the Southeast Asia region to continue in 2015, maintain SELL rating but we put our fair value estimate of S$0.21 under review.

Source: OCBC Research - 5 Jan 2015