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Stocks to watch: SIA, SGX, ST Engineering, Yanlord Land
THE following companies saw new developments that may affect trading of their shares on Thursday:
Singapore Airlines (SIA): SIA's S$500 million 3.03 per cent five-year bonds have been upsized to S$750 million following strong demand from investors. The bond offering, the second in nine years, targeted retail investors and received a total of S$2.2 billion in orders, from both retail and institutional investors. SIA decided to upsize the retail portion to S$450 million from S$300 million following applications worth S$526 million. The minimum size for retail investors is S$1,000. The application by retail investors closed on March 26. The company also upsized the placement tranche to S$300 million from S$200 million after receiving continued requests from institutional investors. The minimum order for the placement tranche is S$250,000. The net proceeds from the offer of the retail bonds will be used for aircraft purchases and related payments as SIA is replacing older aircraft and growing its fleet with new-technology planes. SIA shares closed flat at S$9.56 on Wednesday.
Singapore Exchange (SGX): SGX has acquired a 20 per cent stake in BidFX, including an option for additional shares to gain a controlling interest, for US$25 million in cash. Loh Boon Chye, CEO of SGX told a media briefing on Wednesday that the investment is part of the Singapore bourse’s strategy to build core pillars of growth across multiple asset classes. In January 2017, BidFX was spun off as a division of TradingScreen, a provider of a multi-asset execution and order management system. Jean-Philippe Male, BidFX CEO, said the funds will be used to grow its reach and offering among institutional investors. The company plans to extend its footprint in Sydney, Hong Kong and Tokyo, as well as Europe. Shares in SGX closed at S$7.29 apiece on Wednesday, up 0.4 per cent, or three Singapore cents.
ST Engineering: ST Engineering announced on Wednesday that it has entered into a conditional share purchase agreement to acquire 100 per cent of Belgium-based satellite telecommunications firm, Newtec Group, for 250 million euros (S$383 million) in cash. The deal amount translates to a multiple of 14.6 times Newtec's Ebita, and 2.7 times revenue for the financial year ended Sept 30, 2018. The businesses, when combined, are expected to produce about S$200 million in value creation. The group said that the proposed acquisition of Newtec will add intellectual property, products and market access. ST Engineering will also continue to invest in Newtec in Belgium to position it to be the group's European centre for the satellite telecommunications business. The counter closed at S$3.75 apiece on Wednesday, down 0.3 per cent, or one Singapore cent.
Yanlord Land Group: The real estate developer said on Wednesday that it has fully sold out on the first day of its latest launch of apartment units at Riverbay Gardens in Suzhou, China to garner over 1.155 billion yuan (S$233 million). All 193 apartment units available during the first day of sales on March 26 were sold out, with an average selling price of 35,300 yuan per square metre for the 32,745 sq m gross floor area sold. Sales were done through a blockchain-driven public balloting system, which shortlisted buyers and enabled them to select units simultaneously, said the group. According to Yanlord Land, Riverbay Gardens is the first project in China to utilise blockchain technology-driven systems in the balloting process for the sale of residential units, with local authorities from Xiangcheng District's notary office in Suzhou city overseeing the balloting process. The counter closed at S$1.32 on Wednesday, up 0.8 per cent or one Singapore cent.