Stocks to watch: SIA, CDLHT, Straits Trading, Civmec, Food Innovators
THE following companies saw new developments that may affect trading of their securities on Wednesday (Oct 16):
Singapore Airlines (SIA): SIA Group’s passenger capacity for September rose 9.7 per cent, outpacing the month’s 7.7 per cent passenger traffic growth. The national carrier and its low-cost arm Scoot flew 3.1 million passengers in September, up 7.9 per cent year on year, according to the group’s latest operating update on Tuesday. SIA shares closed 0.3 per cent or S$0.02 lower at S$6.39, before the update.
CDL Hospitality Trusts (CDLHT): The stapled group is acquiring an upscale lifestyle boutique hotel in Exeter, England, and two retail units in the hotel for about £19.4 million (S$33.2 million). The acquisition will be completed once relevant conditions are met and will be fully funded through debt, said the managers on Tuesday. Post-acquisition, CDLHT’s pro forma gearing as at Jun 30 will rise from 37.7 per cent to 38.4 per cent. The acquisition is predicted to be accretive on stabilisation. Stapled securities of CDLHT closed 0.5 per cent or S$0.005 higher at S$0.98, before the announcement.
Straits Trading Company: The company will issue digital securities with a new S$55 million multi-currency debt issuance programme. The first issuance launched under the programme on Tuesday will be offered for subscription only to accredited investors and institutional investors at an interest rate of 3.8 per cent per annum, and will mature about three months from the date of issuance. The conglomerate-investment company expects to raise between S$5 million and S$10 million from investors. It will make further announcements when there are material developments to the programme and the three-month commercial paper. The counter closed 1.4 per cent or S$0.02 lower at S$1.43 on Tuesday, before the announcement.
Civmec : The construction and engineering services provider signed a non-binding heads of agreement with German shipbuilder Naval Vessels Lurssen (NVL) to transfer the latter’s ownership of its subsidiary Luerssen Australia. NVL will transfer all its shareholding in Luerssen Australia to Civmec, including all assets, employees and licences, once the transaction is completed. Civmec said engagements with the authorities on the approval will start immediately, with a target date of Dec 31, as the proposed ownership change is subject to government approval. Civmec shares closed 2.8 per cent or S$0.03 lower at S$1.04 on Tuesday, before the announcement.
Food Innovators: The Japanese food and beverage operator’s initial public offering closed with 14 million of its new shares fully subscribed at S$0.22 apiece. There were 264 valid applications for 6.3 million public shares, translating to a 6.3 times subscription rate as one million shares were available for public subscription, said the company on Tuesday. It received application monies of around S$1.4 million. Of the roughly S$3.1 million of gross proceeds raised, around 16.2 per cent will go towards funding the expansion of its food retail business outside Japan, 16.2 per cent towards acquiring new Japanese food brands, and 3.7 per cent towards general working capital. The counter will begin trading on the Singapore Exchange on Wednesday at 9 am.
