Thursday, April 28, 2011

Q&M Dental Group (S) rated 'increase exposure' by SIAS

Stock Name: Q&M Dental
Company Name: Q & M DENTAL GROUP (S) LIMITED
Research House: SIAS

SIAS Research in an April 28 research report says: "Q&M Dental Group (Singapore) Ltd (Q&M) announced the entry of International Finance Corporation (IFC) as a strategic investor of the Group.

"IFC is a heavyweight investor and we believe that their presence is likely to upgrade the company's profile and stir the interest of other institutional investors. Accordingly, IFC will provide a US$10 million senior loan and a US$5 million convertible loan to the company. The latter is convertible at a price of 69 cents per share and both loans are subjected to an interest rate of LIBOR + 2.8%.

"Assuming that the convertible loan is fully converted, approximately 9.13m shares will be issued. We have factored in the potential dilution effect into our forecasts, given that our intrinsic value is higher than the conversion price. Intrinsic value of 85 cents. INCREASE EXPOSURE."

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