Home Capital Right Timing

How will Bayberry trade once it’s listed? Likely lower than $0.122

Goola Warden
Goola Warden4/28/2022 04:11 PM GMT+08  • 4 min read
How will Bayberry trade once it’s listed? Likely lower than $0.122
Source: Keppel Corp
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Bayberry is the name given to the combined entity comprising Keppel Offshore & Marine (KOM) without its legacy rigs and associated receivables, and all of Sembcorp Marine (SCM). Based on discounted cash flow valuations done by DBS Bank, KOM will make up 56% of Bayberry, and SCM 44%. SCM’s shares will be exchanged for shares in Bayberry on a 1-to-1 basis. The price at which SCM’s shares are exchanged is $0.122, the volume weighted average price (VWAP) of the 10 days up to April 26.

Since SCM’s shares outstanding are 31.4 billion, its share in Bayberry is valued at $3.83 billion. Because of the 56:44 ratio, Bayberry will issue 39.9 billion shares to KOM, valuing KOM (ex-legacy rigs etc) at $4.87 billion. These are theoretical pro forma valuations.

How Bayberry trades once it is listed — assuming that approvals from regulators and agencies in the geographies in which KOM and SCM have operations, and from shareholders are received — depends on how SCM trades ahead of Bayberry’s listing. This is because Bayberry’s valuation is tied to SCM’s VWAP before the KOM-SCM merger conditions were announced.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.