[/caption]
Sinomem placed out 50mn new shares at S$0.62 cents and raised about S$31mn (read its announcement). A broker had rated the stock a buy last week and we understand that the company is currently on a road show which included Hong Kong and London.
The placement is timely as the company has a S$50mn CB that is due at the end of this year. It does have cash of more than S$70mn but as it ventures more into BOO projects - it would need more long term funding......this placement would beef up its balance sheet cash position net of the CB to more than S$50mn. I still like the share and believe that on a medium term basis, it can still offer further upside especially when it executes its BOO projects well. The latter by creating a long term recurrent profit stream willl enable Sinomem to trade at a higher PER valuation. Read more...[caption id="attachment_1206" align="alignright" width="150" caption="Photo by Leonid Mamchenkov"][/caption]
Sinomem placed out 50mn new shares at S$0.62 cents and raised about S$31mn (read its announcement). A broker had rated the stock a buy last week and we understand that the company is currently on a road show which included Hong Kong and London.
The placement is timely as the company has a S$50mn CB that is due at the end of this year. It does have cash of more than S$70mn but as it ventures more into BOO projects - it would need more long term funding......this placement would beef up its balance sheet cash position net of the CB to more than S$50mn. I still like the share and believe that on a medium term basis, it can still offer further upside especially when it executes its BOO projects well. The latter by creating a long term recurrent profit stream willl enable Sinomem to trade at a higher PER valuation. Read more...
[/caption]
Sinomem placed out 50mn new shares at S$0.62 cents and raised about S$31mn (read its announcement). A broker had rated the stock a buy last week and we understand that the company is currently on a road show which included Hong Kong and London.
The placement is timely as the company has a S$50mn CB that is due at the end of this year. It does have cash of more than S$70mn but as it ventures more into BOO projects - it would need more long term funding......this placement would beef up its balance sheet cash position net of the CB to more than S$50mn. I still like the share and believe that on a medium term basis, it can still offer further upside especially when it executes its BOO projects well. The latter by creating a long term recurrent profit stream willl enable Sinomem to trade at a higher PER valuation. Read more...
