SINGAPORE (Dec 31): Swiber Holdings has proposed a rights issue to raise $45.9 million for working capital.

The company, which provides engineering and construction services to the offshore oil and gas industry, will issue up to 305.7 million new shares at 15 cents each on the basis of one rights share for every two ordinary shares held.

The rights shares are priced at a 49.2% discount to the stock's Dec 30 closing price of 29.5 cents and are 39.2% below Swiber's theoretical ex-rights price of 24.7 cents.

Substantial shareholders Newshire Capital and Pang Yoke Min, who together own 22.9% of Swiber, have agreed to subscribe for up to 152.8 million rights shares, representing 50% of the total shares to be issued.

The rights shares, excluding those that Newshire and Pang will take up, will be underwritten by DBS Bank.

Swiber's shares will trade ex-rights from Jan 6. The rights shares will start trading on Feb 5.

The company had US$101.7 million ($127.2 million) in cash on its balance sheet as at Sept 30. Its net debt was 1.7 times its equity.

Two weeks ago, it clinched a contract worth US$710 million to provide engineering, construction and subsea services to a Houston-based oil and gas company's offshore field development project in West Africa, a new geographical market for Swiber.