StarLux Airlines (2646)announcement Based on the base date of the cash capital increase in 2015 and the related issuance schedule, 300 million ordinary shares are expected to be issued this time, with a total face value of NT$3 billion. The main purpose of raising funds this time is to repay bank borrowings, aiming to reduce the financial leverage and interest expense pressure caused by expanding the long-haul fleet. According to the simultaneously released cumulative financial report for the first three quarters of 2015, StarLux Airlines’ operating profit reached 648 million yuan, showing that the transportation industry has achieved a profitable scale. However, due to the erosion of financial costs such as borrowing interest and lease liabilities, the after-tax loss in the first three quarters was 638 million yuan, and the after-tax loss per share was 0.21 yuan. This capital increase will help strengthen the company's own capital and improve its solvency. How can investors participate in the subscription of new shares?

StarLux Airlines’ 300 million share capital increase allotment structure and original shareholders’ subscription rights

Of the 300 million shares issued in this cash capital increase, 80% (240,000,000 shares) are reserved for subscription by original shareholders in proportion to their shareholdings, and employee subscription and public underwriting each account for 10% (30,000,000 shares each). Based on the current issued common shares of approximately 3,008,735,000 shares, the original shareholders can subscribe for approximately 79.77 shares for every 1,000 shares. Odd shares of less than 1 share can be applied to the stock agency within 5 days from the date of closure of transfers. For overdue or insufficient portions, the chairman is authorized to contact a specific person to subscribe.

How do investors participate in new shares?

If original shareholders want to participate in this subscription, they must note that the last transfer date is December 8, 2020. In accordance with the "T+2 day delivery" system of Taiwan stocks, they must buy before the close of trading on December 4, 2020 at the latest. The payment period for the original shareholders and employees is scheduled from December 17 to December 28, 2015, and payment can be made at a financial institution with the payment letter. If you are a general market investor who is not a shareholder, you can pay attention to the subsequent stock lottery schedule. This time Xingyu has released 30,000 publicly underwritten new shares, and you should have a higher chance of winning.

However, the pricing of this cash capital increase has not yet been released, and the final payment amount depends on the "issuance price per share" subsequently announced. At that time, the discount range of the capital increase and the market price difference can be observed.

Xingyu’s EPS in the first three quarters was -0.21 yuan

StarLux Airline's cumulative operating income in the first three quarters of 2015 reached 44.835 billion yuan, reflecting the gradual release of transportation capacity on trans-Pacific routes and the Asian regional network. The operating gross profit was 4.951 billion yuan, and the gross profit margin was 11.04%, driving the industry’s operating profit to 648 million yuan. Data shows that its main shipping business has a profitable basis due to the increase in transportation volume, and its operating model has transitioned from early expansion to the capacity realization stage. However, subsequent revenue momentum is still affected by the global aviation market climate and oil price fluctuations.

Affected by financial costs such as borrowing interest and lease liabilities, the after-tax loss in the first three quarters was 638 million yuan, and the after-tax loss per share was 0.21 yuan. As of the end of the third quarter of 2015, the company's total assets were 174.749 billion yuan, total liabilities were 144.066 billion yuan, the debt ratio reached 82.44%, and the book value per share (Book Value Per Share) was approximately 10.20 yuan. The main purpose of this capital increase to repay bank borrowings is to reduce fixed financial burdens and strengthen the asset-liability structure.

this article StarLux Airlines has increased its capital by RMB 3 billion in cash. How can investors subscribe for new shares? first appeared in Chain News ABMedia。