BT on 21 Dec article on the anomality thrown up by the case..

“A concern arises, for example, where the application for excess rights shares is vastly disproportionate in relation to the number of shares that a minority shareholder holds,” SGX RegCo said in a Regulator’s Column published the same day its settlement with Stamford Land was announced.

“Such individuals may have purchased a small quantity of the issuer’s shares in order to participate in the rights issue, for the purpose of acquiring a large quantity of excess rights shares at discounted prices,” SGX RegCo added.

The regulator went on to say that it should be consulted if companies have legitimate concerns. “The onus is on issuers to justify to SGX RegCo why it should not insist on strict compliance with the rule.”

From this, it appears that small retail investors should subscribe for all rights and more excess rights issues (when they have the funds) if they are offered at a substantial discount to the last traded price and NAV.. Otherwise their share holdings will be diluted. Not only that their average cost will remain high and not come cown post rights issued. In such cases, the controlling share holders will be happy to mope up all unsubscribed rights shares at the substantially discounted price.