CSE Global issues 63 million warrants to Amazon unit, tied to US$1.5 billion spending target; soars 6.6% to 10-year high
Each warrant can be converted to one CSE share at an exercise price of S$0.7671
[SINGAPORE] Mainboard-listed systems integrator CSE Global has entered into an agreement to issue 62,968,580 new warrants to a wholly owned subsidiary of Amazon.
The warrants will be issued to Amazon NV Investment Holdings, which currently does not hold any shares in the CSE Global, the company said on Tuesday (Nov 11).
Following the news, CSE Global shares jumped 6.6 per cent or S$0.055 to a 10-year high of S$0.885 as at 1 pm, with some 17.4 million shares changing hands. This is the highest price the stock has reached in more than a decade; The last time it traded higher was in 2013, ShareInvestor data indicated.
By 1.41 pm, the counter had settled to S$0.87, still up by 4.8 per cent or S$0.04, with around 21.3 million shares transacted.
Each warrant can be converted to one CSE share at an exercise price of S$0.7671, or a total of S$48.3 million, if all the warrants are exercised into shares.
If all warrants are exercised, the new shares would represent an 8 per cent stake in the company’s enlarged share capital.
The conversion price represents a 7 per cent discount to CSE’s volume-weighted average price of S$0.8245 on Monday, the day the transaction agreement was signed.
CSE said in an announcement on Tuesday that the warrants are non-transferable, with some exceptions for affiliates, and will not be listed on the Singapore Exchange Securities Trading Limited. If vested, they can be exercised at any time before they expire on Nov 9, 2030.
The warrants will fully vest on the condition that Amazon and its affiliates make qualifying payments for products and services totalling US$1.5 billion. CSE said Amazon purchases products from the company.
CSE Global said the issuance will enable the company to raise funds for operating expenditure and strengthen its capital base.
Based on pro forma financials for FY2024, the full exercise of the warrants would raise the group’s net tangible assets per share from S$0.21 to S$0.26. However, earnings per share would be diluted, falling from S$0.0391 to S$0.0357.
Q3 new orders fall
The announcement came as CSE Global released its update for the third quarter ended Sep 30, 2025.
The group recorded S$146.1 million in new orders, a 21.7 per cent decrease from the S$186.7 million in Q3 last year.
The company attributed this year-on-year impact to unfavourable foreign exchange movements, particularly from the US and Australian dollars, as well as two major contracts worth S$38.4 million secured in Q3 2024.
Excluding the effects of those two major contracts and on a constant currency basis, the group’s order intake for this quarter would have a year-on-year increase of 2.7 per cent.
Its communications segment posted a 24.2 per cent year-on-year rise in new orders to S$75.2 million. It was mainly driven by new orders from recently acquired companies in the United States.
The electrification segment secured S$48.0 million in new orders. While this was a 38.7 per cent drop from the prior year, the company noted that excluding the S$38.4 million in major contracts from Q3 2024, this segment’s order intake grew 20.2 per cent year-on-year.
The automation segment experienced the sharpest decline, with new orders falling 52.1 per cent to S$22.9 million. This was due to the absence of greenfield orders in the oil and gas sector that were received in the third quarter last year.
With the new orders, the group’s order book stood at S$467.5 million as at Sep 30, 2025.
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