EZION HOLDINGS LIMITED
5ME.SI
Ezion Holdings: Undertakes rights issue at S$0.29/share; marks formal entry into Chinese offshore windfarm market
- Ezion Holdings has proposed a renounceable underwritten rights issue of up to 487.3m new shares at an issue price of S$0.29 (~44% discount to closing price of S$0.52 on 30 Jun), on the basis of three rights shares for every 10 existing ordinary shares.
- DBS Bank, UOB and Maybank Kim Eng Securities are the joint underwriters of the rights issue.
- Under a “Maximum Subscription scenario”, the rights issue will raise S$137.5m in net proceeds; under a “Minimum Subscription scenario”, it will raise S$135.0m in net proceeds.
- 70% of the proceeds are earmarked for the potential acquisition of new offshore & marine assets, as well as the potential upgrading and modification of existing assets; the rest is for general working capital.
- Mr. Chew (CEO of Ezion) and his spouse will subscribe and pay for 43.34m rights shares entitlements and up to a certain number of excess rights shares (subject to availability), provided that the total value is up to S$50m, representing about 35.38% of the total rights share to be issued.
- Do note that Ezion’s shares will trade ex-rights from 9am on 7 Jul and the theoretical ex-rights price is S$0.467/share (based on current closing price).
- Meanwhile, Ezion has established Sinomarine & Teras (Tianjin) Offshore Co, a JV which marks the formal entry of the company into the Chinese offshore windfarm market.
- Prior to this, we had a HOLD rating with S$0.55 fair value estimate, which is now under review pending an analyst briefing this morning.
Low Pei Han CFA
OCBC Securities
|
http://www.ocbcresearch.com/
2016-07-01
OCBC Securities
SGX Stock
Analyst Report
99999
Same
0.55
