Friday, July 12, 2013

Sunway Bhd - Goes ex-rights

Sunway Bhd -
Price Target:3.21
Last Price:3.15
Goes ex-rights

- We maintain our Hold on Sunway with a fair value of RM3.05/share ex-rights, based on a 5% discount to our SOP value of RM3.21/share.

- The stock will be traded ex for the company’s renounceable rights issue (one-for-every 3 existing shares) of up to 568.7mil shares at RM1.70/share. The entitlement date on 15 July, and the trading of the rights (SUNWAY-OR) will start on 16 July, until the last day of trading on 22 July.

- The last day for acceptance, renunciation and payment in relation to the subscription of the rights is on 30 July. The exercise includes the issue of 31.25mil additional warrants. Sunway has also proposed to issue up to 10% (up to 155.1mil shares) of its paid-up capital under an ESOS.

- The company has procured an undertaking from the major shareholders, including Sungei Way Sdn Bhd, Tan Sri Jeffrey Cheah and Sarena Cheah, who collectively hold 51.48% or 221.77mil shares of the company.

- Their subscription will amount to RM377mil, which will also be the minimum proceeds level. The maximum level totals RM966.8mil. About a third of the proceeds will be used to pare down borrowings within 12 months, and the bulk of it will be for capital expenditure.

- It has been reported that Sunway will launch phase 1 of its Sunway Iskandar project in Medini, with a GDV of up to RM350mil by early next year. It will comprise serviced apartments, office suites and a retail podium.

- Sunway’s medium- and long-term prospects largely hinge on its planned development of its 1,770 acre-landbank in Iskandar Malaysia, which will be developed over a 15-year period, with a potential GDV of RM30bil.

- The group also has 88 acres of undeveloped landbank in Bukit Lenang in Johor Bahru. Given the size of the planned development in Iskandar Malaysia and close proximity to Singapore, take-up rates would be highly dependent on the participation of foreign buyers.

- Sunway’s maiden project in Johor will be on an 88-acre parcel in Taman Molek in Bukit Lenang, near Johor Baru city comprising 50 to 100 units of bungalows priced at between RM1.3mil and RM1.5mil in a gated and guarded community. It is scheduled to be launched this month.

Source: AmeSecurities

Publish date:11/07/13

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)

乔治·索罗斯(George Soros)



高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo

There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock