Stock Name: Ezra
Company Name: EZRA HOLDINGS LIMITED
CIMB in a Sept 6 research report says: "Ezra is considering an issue of S$-denominated non-dilutive perpetual capital securities, following in Ezion's recent footsteps. No details have been disclosed but we believe the size could be US$100 million-120 million, likely a hybrid security.
"Proceeds could be used for debt repayment, working capital and longer-run capex. The exercise could reduce its net debt ratio to 0.7x (from 0.9x) and add to its earnings from lower interest expense. However, free cash flows could be affected by the high coupon rate (estimated at 6-8%).
"The shares are trading at 7x CY12 P/E, below the 5-year small-mid-cap average of 11x. No change to our earnings estimates or SOP target price of $1.55 for now. MAINTAIN OUTPERFORM."
Company Name: EZRA HOLDINGS LIMITED
| Research House: CIMB | Price Call: BUY | Target Price: 1.55 |
CIMB in a Sept 6 research report says: "Ezra is considering an issue of S$-denominated non-dilutive perpetual capital securities, following in Ezion's recent footsteps. No details have been disclosed but we believe the size could be US$100 million-120 million, likely a hybrid security.
"Proceeds could be used for debt repayment, working capital and longer-run capex. The exercise could reduce its net debt ratio to 0.7x (from 0.9x) and add to its earnings from lower interest expense. However, free cash flows could be affected by the high coupon rate (estimated at 6-8%).
"The shares are trading at 7x CY12 P/E, below the 5-year small-mid-cap average of 11x. No change to our earnings estimates or SOP target price of $1.55 for now. MAINTAIN OUTPERFORM."
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