Placements continue, Sert buys back units
[SINGAPORE] Over the five trading sessions from Oct 3 to 9, institutions were net buyers of Singapore stocks, with net institutional inflow of S$250 million, adding to the S$275 million net institutional inflow in the preceding week.
Institutional flows
Over the five trading sessions, the stocks that had the highest net institutional inflow included DBS , Sembcorp Industries , Keppel , City Developments Ltd , UOB , Sats , OCBC , ST Engineering , Singtel and CapitaLand Integrated Commercial Trust .
Meanwhile, CapitaLand Investment , Golden Agri-Resources , Genting Singapore , Wilmar International , Singapore Post , Mapletree Industrial Trust , Jardine Matheson , Digital Core Real Estate Investment Trust (Reit), Geo Energy Resources and Centurion Corp led the net institutional outflow over the five sessions.
Financial services booked the most net institutional inflow in the week, while consumer non-cyclicals recorded the most net institutional outflow.
Share buybacks
For the five sessions to Oct 9 inclusive, 17 primary-listed companies conducted buybacks with a total consideration of S$48.7 million. OCBC again led the consideration tally, buying back 1.25 million of its shares at an average price of S$16.86 apiece.
Secondary-listed Hongkong Land also repurchased 824,600 shares at US$6.52 each on average. This brought the total for its buyback mandate to US$199 million.
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Stoneweg Europe Stapled Trust
Between Oct 6 and 9, Stoneweg Europe Stapled Trust (Sert) bought back 657,700 units at an average price of 1.51 euros each. The manager of Sert said that the buybacks were a flexible, cost-effective capital-management strategy aimed at enhancing returns on equity and net asset value per unit.
The recent repurchases followed Sert’s announcement on Oct 3 that Fitch Ratings had upgraded its long-term issuer default rating to “BBB”, from “BBB-” previously, with a stable outlook. The trust’s 500 million euro (S$752 million) notes due in January 2031 and the 1.5 billion euro medium-term note programme were also upgraded to “BBB”.
Sert’s manager attributed the upgrades to its active portfolio rejuvenation strategy, where asset recycling and targeted redevelopments have enhanced portfolio quality and strengthened cash flow visibility.
It also announced on Oct 2 that it retained its four-star rating for a third consecutive year in the 2025 GRESB Real Estate Assessment. It scored 85 points, higher than the global and peer average of 79.
Keppel Reit
On Oct 8, Keppel Reit Management proposed a private placement of new Keppel Reit units with institutional, accredited and other investors at an issue price between S$0.983 and S$1.004 per unit, to raise at least S$113 million.
Of this amount, S$109.6 million or 97 per cent will partially finance an acquisition in Sydney, and the remaining S$3.4 million or 3 per cent will go towards related fees and expenses. DBS, OCBC and UOB were appointed as the joint underwriters.
The private placement was about three times covered, with strong demand from new and existing unitholders globally, including institutional and accredited investors. The issue price per new unit was fixed at S$0.983.
Prior to the placement announcement, Keppel Reit revealed that it was acquiring a 75 per cent stake in Sydney’s Top Ryde City Shopping Centre through its Australian sub-trust under a sale and purchase agreement.
Its manager believes that the acquisition offers a strategic entry into the retail property market, exposure to Australia’s strong economic fundamentals, a defensive asset focused on convenience and non-discretionary spending, stellar asset performance, and distribution per unit accretion for unitholders.
At the minimum price, the roughly 115 million new units placed represent around 2.97 per cent of the base figure – or about 3.48 per cent, including prior issuance, well within the 20 per cent limit for non-pro rata issuance. Trading in the new units is expected to commence at 9 am on Oct 17.
HRnetGroup
HRnetGroup announced the results of its Oct 6 placement of 9.8 million shares. The investors and their allocations were Avanda Investment Management with 4.2 million of the securities, Lion Global Investors with about 2.1 million, ICH Asset Management with 1.4 million, Lim Chap Huat with 1.38 million, and Dr Chong Weng Chiew with 700,000.
The placement originated from a reverse inquiry by a financial institution. The company proceeded to enhance trading liquidity and free float, with no fees or commissions payable to the institution. At a placement price of S$0.714 per share, the gross proceeds were S$6.98 million, which have been earmarked for working capital.
ASL Marine
ASL Marine on Oct 6 announced that it had entered into a placement agreement with SAC Capital, in which Maybank Securities was appointed as the sub-placement agent. ASL Marine proceeded with the proposed placement to support business expansion and broaden its shareholder base, which may enhance the trading liquidity of its shares.
Under this agreement, it is offering up to 41.1 million fully paid up ordinary shares at S$0.1703 apiece, amounting to a consideration of around S$7 million.
The placement shares will account for about 4.16 per cent of the company’s current issued and paid-up share capital. After the placement, they will represent about 3.99 per cent of the enlarged issued share capital of about one billion shares, excluding treasury shares.
The placement price of S$0.1703 a share follows on from ASL Marine’s stock price at the end of the first half of 2025, which was S$0.0600. In H1, the company’s average daily turnover was near S$40,000; this level has since breached S$500,000.
ASL Marine is involved in shipbuilding, ship repair and conversion, ship chartering, dredge engineering and other marine-related services. For the second half of FY2025, its group revenue was S$177.9 million, S$7.3 million or 4.3 per cent higher compared to the figure in H2 FY2024.
Apart from the higher earnings, the group posted asset disposal gains and lower finance costs, offset partly by increased administrative expenses. This brought its attributable profit for H2 FY2025 to S$13.1 million, up from S$2.4 million in the year-ago period.
ASL Marine said that the outlook for shipbuilding, repair, offshore and marine services depends on global economic conditions, shipping demand, regulatory changes, environmental standards and technology.
Its performance is influenced by global trade logistics, energy and resource supply and demand, as well as infrastructure investment, especially in Asia. It added that while global impacts are hard to predict, the long-term outlook is supported by strong demand drivers and continued investment in trade and infrastructure.
The group also remains focused on mitigating risks, optimising operations and strengthening its presence across markets. In line with its strategic vision, it is exploring growth opportunities aligned with sustainability, including marine recycling and low-emission maritime services.
Maybank Securities has been involved in multiple share placements in Singapore in H2 this year. Its head of equity research, Thilan Wickramasinghe, noted that with the efficiency of existing share placement processes in the local market, recent investor demand for these exercises has helped with timely completions.
Director transactions
Over the five trading sessions, 50 director interests and substantial shareholdings were filed. Across 22 primary-listed stocks, directors or chief executive officers reported one acquisition and five disposals, while substantial shareholders recorded two acquisitions and two disposals.
MegaChem
On Oct 8, MegaChem managing director Sidney Chew acquired 200,000 shares at S$0.45 each. The married deal increased his total interest in the one-stop speciality chemical solutions provider to 36.5 per cent, from 36.35 per cent.
His preceding acquisition was on Aug 28, with 10,000 shares purchased for S$0.42 apiece. He has gradually increased his total interest from 35.23 per cent as at end-2019.
For its H1 FY2025, MegaChem reported a 1.7 per cent year-on-year revenue decline to S$64.1 million, though net profit remained stable at S$1.7 million (adjusted for a prior fire incident).
Chew said that despite global challenges in the chemicals sector, the group showed resilience, with a focus on prudent inventory management. He added that construction of its new warehouse is on track for completion by end-2025, enhancing the company’s long-term competitiveness.
iFast Corp
On Oct 2, Fullerton Fund Management Company acquired 219,300 shares of iFast Corp at an average price of S$9.04 apiece. Fullerton is an independently managed Temasek portfolio company, and is not involved in the investor’s business or operating decisions, including those regarding its positions in shares.
Through its deemed interests through Cuscaden Peak, DBS Group and Fullerton, Temasek is now a substantial shareholder of iFast Corp with a 5.03 per cent interest as at Oct 2.
Fullerton was also one of the first three asset managers appointed by the Monetary Authority of Singapore under the S$5 billion Equity Market Development Programme. Last week, it rolled out its first retail fund under the scheme.
The writer is the market strategist at Singapore Exchange (SGX). To read SGX’s market research reports, visit sgx.com/research.
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