KUALA LUMPUR (March 20): Hwang DBS Vickers Research is maintaining its Hold and Target Price of RM4.50 for S P Setia Bhd, based on 10% discount to RNAV of RM4.97.
It said on Tuesday S P Setia had announced that its public spread fell to below the required 25% minimum level as at Monday’s closing date for acceptance of the mandatory general offer, with Permodalan Nasional Bhd (PNB) and parties acting in concert (including Tan Sri Liew Kee Sin) holding 79% of shares and 88% of warrants.
HDBSVR said with PNB intending to maintain the listing status of S P Setia, an application will be made to Bursa Malaysia for a lower public spread or for an extension of time to rectify the issue within three months.
“We believe PNB will likely make a placement to improve S P Setia’s liquidity (4% stake works out to 75 million shares worth RM296 million a RM3.95 a share),” it said.
The research house said it still likes S P Setia for its strong track record (improved clarity on management continuity with Liew remaining fully in control for the next three years) and strong growth potential.
HDBSVR said S P Setia is on track to achieve its RM4 billion FY12 sales target (+21% on-year), with RM932 million chalked so far for the first three months and a brimming launch pipeline.
It added S P Setia is still looking for more landbank (including government land redevelopment and overseas projects) - leveraging on its strong balance sheet (net cash) and backing from PNB.
It said on Tuesday S P Setia had announced that its public spread fell to below the required 25% minimum level as at Monday’s closing date for acceptance of the mandatory general offer, with Permodalan Nasional Bhd (PNB) and parties acting in concert (including Tan Sri Liew Kee Sin) holding 79% of shares and 88% of warrants.
HDBSVR said with PNB intending to maintain the listing status of S P Setia, an application will be made to Bursa Malaysia for a lower public spread or for an extension of time to rectify the issue within three months.
“We believe PNB will likely make a placement to improve S P Setia’s liquidity (4% stake works out to 75 million shares worth RM296 million a RM3.95 a share),” it said.
The research house said it still likes S P Setia for its strong track record (improved clarity on management continuity with Liew remaining fully in control for the next three years) and strong growth potential.
HDBSVR said S P Setia is on track to achieve its RM4 billion FY12 sales target (+21% on-year), with RM932 million chalked so far for the first three months and a brimming launch pipeline.
It added S P Setia is still looking for more landbank (including government land redevelopment and overseas projects) - leveraging on its strong balance sheet (net cash) and backing from PNB.
