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Tuesday, July 27, 2010

Notion (RM2.76): Private placement not likely to go through

Just read a report on Notion Vtec by ECM Libra. Private placement likely will not go through possibly due to pricing issues. Thus, the company will opt for bank borrowings to fund its expansion for its new third plant in Klang. Nonetheless, the 1-for-5 free warrants will go through as planned. ECM Libra upgraded their EPS by 3-5% to take into account the aborted private placement, higher interest costs and dilution from in-the-money warrants.

This will be good for the share price as EPS will not be diluted. Shareholders will be able have a greater participation into the potential upside of the share price with the free warrants. Ex-date for the warrants will be 30 July 2010 while entitlement date is on 3 Aug 2010. Exercise price for warrants = RM2.55.

For more info, click here.

1 comment:

  1. The private placement is very good for foreign investment.Here ECM Libra upgraded their EPS by 3-5% to take into account the aborted private placement with high rate with warrant.
    Private Placement Memorandum

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