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Stocks to watch: Yongnam, DMX, United Food, Soilbuild Construction
THE following companies saw new developments that may affect trading of their shares on Friday:
Yongnam Holdings: The engineering and construction company is placing out S$12.1 million of shares at 25.5 Singapore cents apiece to raise working capital. The placement price is 6 per cent below the stock's volume weighted average price of 27.13 Singapore cents on Thursday, and 5.6 per cent below Thursday's closing price of 27 Singapore cents. The 47.5 million new shares being offered represent 10 per cent of existing issued share capital, and 9 per cent of the enlarged share base.
DMX Technologies Group: The information technology company is suing former auditor Deloitte & Touche LLP over accounting irregularities discovered in 2015. DMX is alleging professional negligence on Deloitte's part, and is claiming for loss and damages.
United Food Holdings: The soyabean products and animal feed supplier is buying 80 per cent stakes in each of three animal feed-related companies in China for 120 million yuan (S$24.5 million) in cash and convertible bonds, the company announced on Thursday after the market closed. United Food will pay the three vendors 35 million yuan in cash. One of the vendors, Lin Zhongshi, will also receive 85 million yuan of zero per cent bonds convertible into United Food shares at 45 Singapore cents per share. The initial conversion price represents a 21.6 per cent premium to United Food's Oct 5 close of 37 Singapore cents.
Soilbuild Construction Group: The property group announced on Wednesday that it has been awarded a S$50 million contract by SB (Waterfront) Investment for a seven-storey general industrial factory development at No 171 Kallang Way. The project is to be completed in the third quarter of 2019. With the award of this contract, Soilbuild said the group's order book stands at some S$574.2 million, as at the end of June 2017, of which S$389.6 million are domestic construction projects, and S$184.6 million are construction projects in Myanmar.