Business

Published: Wednesday February 13, 2013 MYT 3:49:00 PM

SP Setia up on share placement plan

By Joseph Chin


SP Setia up on share placement plan

KUALA LUMPUR: Shares of SP Setia Bhd rose in active trade on Wednesday as investors were positive on its placement of 320.7 million new shares to raise RM942.90mil.

At 3.27pm, it was up 15 sen to RM3.41. There were 3.44 million shares done.

The FBM KLCI rose 8.69 points to 1,632.49. Turnover was 450.90 million shares valued at RM622.33mil. There were 280 gainers, 201 losers and 225 counters unchanged.

Last week, SP Setia announced the book-building for its proposed placement was completed. The new shares account for 15% of its current share outstanding. The issue price has been fixed at RM2.94 per placement share.

Affin Investment Research cut its FY13-15 earnings per share (EPS) forecast by 10%-11%, taking into account earnings dilution from the share placement and exercise of warrants.

"We have lowered our target price to RM3.35 (from RM3.55) based on an unchanged 30% discount to RNAV of RM4.79 (from RM5.07).

"Notwithstanding our lower TP and EPS forecast, we maintain our ADD rating on SP Setia. We continue to like the group for its strong management, strategic land bank and strong brand equity," it said.

Affin Research was merely neutral on the prospects of the overall Malaysian property market, which may continue to cap the upside potential of SP Setia's share price.

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