Powered by Blogger.

We Have Move To...

2009-07-24

IOI has proposed a 1-for-15 rights issue

Rights issue.
IOI has proposed a 1-for-15 rights issue of up to 420.99m shares at RM2.90 per share. The maximum proposed number of rights shares was derived after taking into consideration the potential enlarged share capital arising from its
  1. Employee Share Option Scheme (ESOS) (95.0m shares);
  2. conversion of remaining US$99.0m CB II (74.6m shares); and
  3. conversion of remaining US$563.5m CB III (168.0m shares).
Target completion is 2HY09 subject to approval by Securities Commission, Bursa Malaysia, and EGM.


Base on HWangDBS the Target prise could be diluted to RM4.10.
We were surprised at the size of the rights issue (only 129.7m shares net of 291.2m share buyback in the current FY), while the group’s net gearing as at 3QFY09 (incl. ST investments and MI) was still a decent 37.2%. Assuming the rights issue takes into account the exercise of CB II (already in the money) and ESOS (CB III is still far out of the money at RM11.00 exercise price), then IOI would issue 409.8m shares. This could dilute HwangDBS target price
to RM4.10 from RM4.40.

No specific purpose.
The group’s stated purpose for the rights issue was to fund capex, investment opportunities and debt repayment (depending on the final issue size). HwangDBS report suspect that the proceeds could be employed to fund new planting capex at the group’s Indonesian states.

0 comments:

Related Posts Plugin for WordPress, Blogger...

PostRank

My Blog List

Blog I Follow

Popular posts

Blog Archive

Templates

Stock Quote

Stock Quotes
KLCI Live Quotes
Lookup Stock Code/Name
Enter Stock Code/Name
FastQuote

Powered by zoomFinanceCorp.

Subscribe Now: Feed Icon

Home Page Home Page Home Page Home Page Home Page Home Page

Investment Idea

My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

Malaysia Gold Price

Gold Price Per Gram in Ringgits
Malaysian Ringgits per Gram

  © Free Blogger Templates 'Greenery' by Ourblogtemplates.com 2008

Back to TOP