S$2.66-CWIL.SI
After discussion with its sponsor and underwriter the manufacturer of plastic parts and components has not been able to come to an agreement on the price range upon which the company was supposed to list 11mln new shares via a dual listing on the Korean Stock Exchange (KST).
The minimum offer price was supposed to be $2.30 or 14% discount to yesterday’s closing price of $2.66.
When the company first disclosed their original intention to seek a dual listing on the KST in mid June 2009, the stock was trading around the $1 level and its PE and price to book was around 3x and 0.5x respectively.
With the stock having surged 166% to $2.66 currently, its valuation has doubled to about 6x PE and 1x price to book.
While the stock has already fallen from its Jan’2011 all time high of $3.50 a share, we believe there could be further down-side risks.
Sunmart, another manufacturer of plastic parts and component who also put their dual listing plan on hold in mid-Jan this year had seen its share price fall back 51% since then to 12.5 cents currently, which is close to the price (around the 11 cents level) when it first announced (end 2009) its intention to dual list on the KST.
No comments:
Post a Comment