Maybank IB Research maintains ‘buy’ rating on SP Setia Bhd
In a research note, Maybank IB said it is taking a neutral stance on SPSB’s latest corporate exercise whereby the company has proposed to raise funds from the equity market via the issuance of new perpetual Islamic redeemable convertible preference shares (RCPS-I).
“The RCPS-I will be entitled to a preferential dividend rate of 6.49 per cent per annum.
“The bulk of the proceeds from the RCPI-I would be used for landbanking,” it said.
It said the issuance of the RCPS-I is expected to raise up to RM1.06 billion, assuming it is fully subscribed.
“The proceeds will be used for landbanking (72 per cent) and working capital (28 per cent). SPSB is actively looking for new landbank both in Malaysia and overseas,” it said.
The proceeds will be used to fund six projects in the Klang Valley and Penang as well as to support the company’s 10:90 home ownership scheme.
As at 12.30pm, the counter slipped five sen to RM3.11 with 329,700 shares changing hands. — Bernama
from Malay Mail Online | All http://ift.tt/1O9NTgi
via Mukah Pages
Post a Comment