Dreamgate has proposed a private placement exercise of up to 20% of its current issued and paid-up share capital at an issue price to be determined later. (BMSB)
This news is a negative surprise as the proposal comes soon after the completion of its earlier private placement exercise back in mid-Aug 09. Based on its latest issued share cap of 959.2m shares, up to 191.8m new shares could be issued pursuant to the exercise. Assuming i) the entire 20% placement is taken up and ii) a placement price of RM0.1673, being the 5-day WAMP, the exercise is expected to i) raise some RM32m to help facilitate the group’s working capital, capex and loan repayment needs but ii) dilute our FY10-11 core EPS by about 17%. - CIMB
No comments:
Post a Comment