Ocean Sky International Limited - Ocean Sky International Ltd ...

� changes in, or our failure to meet, securities analysts’ expectations;
� changes in market valuations of other similar companies;
� legislative and regulatory developments affecting the apparel and textile industries;
� developments in the apparel and textile industries;
� investor perception of investments relating to Asia;
� broad share price fluctuations;
� involvement in litigation; and
� general market conditions and other factors beyond our control.
Future sales of our Shares could affect our Share price
Any future sale or availability of the Shares can have a downward pressure on our share price.
There will be 385,661,720 Shares immediately following the Invitation. Such Shares, except for those
under moratorium, may be sold in the public market in Singapore. Please refer to “Moratorium” on page
92 of this Prospectus for more details on the moratorium.
The sale of a significant number of Shares, including these Shares which are subject to moratorium, in
the public market after the Invitation, or the perception that such sales may occur, could materially and
adversely affect the market price of the Shares. These factors would also affect our ability to raise funds
in new Share offerings.
Except otherwise described in the section entitled “Moratorium” in this Prospectus, there will be no
restrictions on the ability of the substantial Shareholders to sell their Shares either on the SGX-ST or
otherwise.
Overseas Shareholders may not be able to participate in rights offerings or certain other equity
issues
If we offer or cause to be offered to holders of our Shares rights to subscribe for additional Shares or any
right of any other nature, we will have discretion or we may be subject to regulations as to the procedure
to be followed in making such rights available to holders of Shares or in disposing of such rights for the
benefit of such holders and making the net proceeds available to such holders. We may not offer such
rights to the holders of Shares having an address in jurisdictions outside Singapore. Accordingly,
Shareholders having an address outside Singapore may be unable to participate in rights offerings and
may experience a dilution in their holdings as a result.
New investors will incur immediate dilution and may experience further dilution
The Invitation Price of our Shares is substantially higher than the NTA per share of S$0.10 (after the
payment of interim dividend and adjusted for the net proceeds from the Invitation) as at 30 June 2002. If
we were liquidated for NTA immediately following this Invitation, each shareholder subscribing to this
Invitation would receive less than the price they paid for their shares. In addition, we have or intend to
grant our employees share options to acquire our shares under the scheme adopted by us. To the extent
such outstanding options are ultimately exercised, there will be further dilution to investors participating in
this Invitation.
We may require additional funding for our future growth which might lead to dilution
Our operating expenses and capital requirements can be affected by (1) the success of our operations;
(2) the level of resources to attract, maintain and expand our customer base and maintain our
infrastructure and facilities; and (3) the need to incorporate the latest technologies and enhance our
operational capabilities.
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