Over my investing career, I have encountered quite a number of rights issue.
I still remember during the GFC when DBS did a rights issue of about $5 per share. I was lucky enough to subscribe for 1 lot. That really paid dividends (pun intended).
I wrote recently about the SIA rights issue so I am not going to belabor the point here.
Now let’s deal with the Sembcorp Marine rights issue. Again, this topic has been analysed to bits in the newspaper commentary etc. As an existing shareholder, it is really quite simple for me. If you have the $ and a long time horizon, then you will need to subscribe in full so as to avoid dilution. After that, it is really hoping that current or new management can turn the business around post COVID. The alternative is to realise a huge loss and walk away.
Given the importance of the industry (similar to SIA) to Singapore, Temasek is unlikely to standby and watch it die (together with the many jobs involved). As minority shareholders, we can only cross our fingers and hope for the best.