Eversendai dips 1.82% on private placement plan

KUALA LUMPUR (Aug 16): Eversendai Corp Bhd (Sendai) shares dipped 1.82% this morning after Kenanga IB Research said it was negative on Sendai’s proposed 10% private placement as it would reduce FY18 EPS by 5% but only bring net gearing down to 0.85x from 1.0x.

At 9.43am, Sendai fell 2 sen to RM1.08 with 275,000 shares traded.

In a note today, Kenanga IB Research said Sendai’s private placement would raise RM75.8 million mainly for the reduction of short-term debts.

“With this, we maintained FY17E but raised FY18E by 4% on interest savings.

“New target price is reduced to 75 sen from 80 sen on EPS dilution,” it said. — theedgemarkets.com

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