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Neptune Orient Plans to Raise $1 Billion in Rights Offering; Stock Surges Neptune Orient Lines Ltd., Southeast Asia’s largest container carrier, plans to raise S$1.44 billion ($1 billion) selling new shares to repay debt. The stock surged the most in more than eight months.
By just looking at its intention for RI - TO REPAY DEBT, how come the share can surge? Logic will tell u otherwise, moveover, its still heavily in the red at least till FY09.
Tks Alligator... So this seems like a booster for NOL... Share moving up above 1.75 already...
read this from investopedia
Back Stop
The act of providing last-resort support or security in a securities offering for the unsubscribed portion of shares. A company will try and raise capital through an issuance and to guarantee the amount received through the issue, the company will get a back stop from an underwriter or major shareholder to buy any of the unsubscribed shares.
For example, in a rights offering you might hear "ABC Company will provide a 100% back stop of up to $100 million for any un-subscribed portion of the XYZ Company rights offering." If XYZ is trying to raise $200 million but only raises $100 million through investors then ABC Company will purchase the remainder.
Yup correct is RIGHTs thing again. But i prefer this to share placement.
Below are the news:
Singapore's Neptune Orient Lines (NOL) (NEPS.SI), the world's seventh largest container shipping firm, said on Tuesday it plans to raise $1.437 billion by issuing three rights shares for every four existing shares.
NOL, around two thirds-owned by Singapore state investor Temasek Holdings (TEM.UL), said Temasek will subscribe to its pro-rata entitlement of 67.4% and could “backstop” the entire rights issue.
NOL will sell about 1.1 billion shares at $1.30 a share, a discount of about 15% to the firm's last closing share price.
NOL says half of the proceeds from the rights issue will go towards debt payment.
Andrew ( Date: 01-Jun-2009 21:24) Posted:
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Must be something Duo-zhong (big big news) going around NOL. Halt whole day no news.
Hope the news coming out is good news to investors.
I have this idea.......how about T take this company private.....$1.53 look cheap when they won't sell at $4.50....
Just like my kingboard, NTA 60cts but owner want to buy back at 21cts.......bought at 12.5cts and waiting for independent valuation......
SPC not making alot money.....small....buyer want to buy at 2008 price......powerstation.....actually.....we have excessive capacity .....a lot....
matthewsoh ( Date: 01-Jun-2009 19:46) Posted:
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No. If I am not wrong, according to the rules, trading halt cannot be more than 3 days. But sometimes I see stocks halts for weeks before go to SUS.
If more than 3 days, must or should apply for SUS....not strictly followed....
Any comment ?
sureesh40 ( Date: 01-Jun-2009 13:17) Posted:
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Power Station surprisingly is still a strategtic asset because it is a stationary asset....garment said it reserve the right to nationalize it in the event of need lor. Like for example, owner try to use it as a threat ah......turn off electricity for fun la....
Of course, if we don't compensate the owner in a proper manner like what Hugo have done then you know what will happen. So it is balanced.....and how much to pay for electricity is citizen problem.....not the garment problem.
Ship is mobile, HQ can be shifted, it may or may not be in the jurisdication of our garment control lor......BTW, explosive cannot be shipped by air (some kind of International Law or something).....has to be surface mail....heeee. Shipper hate to ship weapons and it is probably easier to steal a fighter jet (for example) than a Camry lor......
On the rights issue, Singapore has become the number 1 in rights issue in Asia (excluding Japan). With 75% of the right issue value in Asia are from Singapore listed companies.
Anyway, let wait for the announcement.....
tomhwang ( Date: 01-Jun-2009 11:59) Posted:
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Andrew ( Date: 01-Jun-2009 11:01) Posted:
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