Hot stock: Dyna-Mac hits 2-year high on Keppel O&M, Sembmarine proposed merger

SHARES of Dyna-Mac Holdings hit a 2-year-3-month high on Wednesday (Apr 27) following news of the proposed merger of Keppel Offshore & Marine (Keppel O&M) and Sembcorp Marine (Sembmarine).

KS Investments, which is wholly-owned by Keppel O&M, owns a 24.43 per cent stake in mainboard-listed Dyna-Mac. 

Dyna-Mac’s counter reached a high of S$0.138 as at 9.10 am on Wednesday, surging 13.1 per cent or S$0.016. The last time Dyna-Mac’s shares closed near this level was on Jan 22, 2020.

By 10.09 am, Dyna-Mac’s shares were trading 12.3 per cent or S$0.015 higher at S$0.137. The counter was also the most hotly traded by volume at the time, with 41.3 million shares changing hands.

Keppel Corporation had announced on Wednesday morning that it entered into definitive agreements with Sembcorp Marine for the proposed combination, which will allow the conglomerate to realise S$9.4 billion in value. Trading in Keppel Corp and Sembmarine shares were halted before the market opened.

Dyna-Mac, which fabricates topside modules and structures for the offshore oil and gas industry, on Monday said it obtained 2 contracts worth S$90.3 million from new and repeat customers. This brought its net order book to S$461.1 million.