Grand Venture Technology - CGS-CIMB Research 2021-10-07: Ready For Acquisitions

GRAND VENTURE TECHNOLOGY LTD (SGX:JLB) | SGinvestors.io GRAND VENTURE TECHNOLOGY LTD (SGX:JLB)

Grand Venture Technology - Ready For Acquisitions




War chest buffered further

  • On 14 Sep 2021, Grand Venture Technology (SGX:JLB) completed the placement of 25.0m new shares at S$1.14 per share for an aggregate S$28.5m (net proceeds after placement cost is S$27.5m. See Grand Venture's announcements).
  • Grand Venture Technology intends to deploy the placement proceeds to build on the group’s competencies, customer base and scale of its capacity. The placement proceeds have been earmarked for business expansion via M&A, joint ventures, partnerships and investments to enhance its operational and engineering capabilities (per Grand Venture's announcements via SGX).
  • In Jan 2021, Grand Venture Technology placed 71.5m new shares at S$0.33 apiece, raising net proceeds of S$23.5m. Together with its second placement, we estimate that Grand Venture Technology has earmarked S$25.0m-26.4m for M&A purposes.

Transfer to mainboard will broaden shareholder base



Reiterate ADD on the cash from the placement of the new shares.
  • See
  • Key downside risks are stronger-than-expected results and accretive M&As.





  • William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2021-10-07
    SGX Stock Analyst Report ADD MAINTAIN ADD 1.410 SAME 1.410



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