Company Name: CHINA FISHERY GROUP LIMITED
Research House: DBS Vickers
China Fishery (B0Z.SG) is +0.9% at $2.28 in light trade, with the prospect of higher valuations from a proposed Hong Kong dual listing partly offset by earnings dilution.
The company is planning a global offering of up to 175 million new share, excluding an over-allotment option for another 25 million shares.
The entire size represents 22.3% of its existing share base.
“While we believe there could be excitement and a potential re-rating from a dual-listing, this is partially offset by the large issue of new shares and limited visibility from the deployment of funds,” says DBS Vickers, which has a Neutral call and a $2.38 target; “we believe management could be aggressively looking for acquisition targets, and most likely pursue more quotas or fishing companies.”
The final offer price will be at a discount of no more than 10% of its Singapore price. Resistance is at the $2.30 52-week high.
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