Brokers' take

Citic Envirotech > Hold DBS Group Research, Dec 29 Dec 29 close: S$0.745 Target price: S$0.80

CITIC Envirotech (CEL SP) entered into an agreement to place 83.2 million new shares to New Resources at S$0.85 per share on Thursday. The new shares account for 3.6 per cent of the existing share capital or 3.5 per cent of the enlarged share capital.

The placement price presents a 14.8 per cent premium to the weighted average price of S$0.7407 of the previous trading day. Net proceeds of S$70.7 million will be used to fund CEL's projects and general working capital.