Interest in Serial System (S69.SG) remains strong, +17.2% at $0.17 on heavy volume, driven by expectations of higher valuations as electronic components distributor seeks to list TDRs, says Dow Jones. 

But with stock now trading near 3-year highs, “it would be prudent to take some profit”, says CIMB. Notes TDRs not fungible; “what you are hoping for is that the TDRs trade at higher valuation and this in turn brings up the Singapore valuation. This is not a sure bet though as the experience of many who have gone the TDR route has shown.” 

 

Serial plans to issue up to 90 million new shares, representing 11.9% of existing share capital and 10.6% of enlarged capital, for TDRs. Orderbook quotes suggest morning high of $0.185 not likely to be breached for rest of day.