Raffles Education scraps $27.4 mil rights issue in view of recent market conditions, share price falls

Raffles Education scraps $27.4 mil rights issue in view of recent market conditions, share price falls

By: 
Michelle Zhu
06/03/19, 01:20 pm

SINGAPORE (Mar 6): Raffles Education Corp is cancelling its proposed 2-for-10 rights issue, which would have allowed the group to raise up to about $27.4 million in net proceeds after raising 275.9 million new shares at the issue price of 10 cents per share.  

Citing “recent market conditions”, the group also notes that its current share price is currently below the 10-cent issue price of the rights shares.

Prior to the midday trading break, shares in the group were down by 2 cents or 18.2% in the year to date (YTD) at 8.8 cents.

Its stock price fell below the 10-cent level since Feb 15 after the group on Feb 13 announced a wider 2Q19 loss of $15.2 million compared to its loss of $1.4 million in 2Q18, due to higher depreciation expenses and costs post the closure of its loss-making institutions in Sydney and Beijing.

To recap, Raffles Education first announced its proposed rights issue on Dec 6 last year saying it intended to channel part of the net proceeds to repaying its debt. This includes about $16.4 million worth of shareholder loans owed to its CEO and chairman, Chew Hua Seng.

At the time of the Dec 2018 announcement, the issue price of 10 cents represented a discount of about 27%.

The group says in its latest Wednesday filing that the group will re-consider other fund raising options and plans, while taking into consideration current circumstances.  

Sanli posts 28% drop in FY19 earnings to $2.2 mil on lower revenue; declares 0.25 cent final dividend

SINGAPORE (May 23): Environmental engineering company Sanli Environmental saw its full year earnings fall 27.7% to $2.2 million for the FY19 ended March, from $3.1 million a year ago. Earnings per share (EPS) fell to 0.83 cents for FY19, compared to 1.19 cents for FY18. FY19 revenue slipped 5.6% to $71.4 million, from $75.6 million a year ago. The decline was mainly attributed to the decrease in contribution from the group’s Operations and Maintenance segment, which saw turnover decrease by 30.6% due to increased competition. Gross profit dropped to $9.8 million for FY19, some 10....
Read More >>

Singapore Shipping Corp FY19 earnings edge up 1.4% to US$10.6 mil

SINGAPORE (May 23): Singapore Shipping Corp (SSC) reported a 19.2% rise in 4Q19 earnings to US$3.1 million from US$2.6 million in 4Q18. This brings FY19 earnings to US$10.6 million, up 1.4% from a year ago. SSC’s ship owning business reported flat 4Q revenue of US$8 million while 4Q profit rose 10.6% to US$2.7 million. Its Agency and logistics business reported a 32.1% rise in 4Q revenue to US$4.5 million although profit fell 4.3% to US$0.76 million. Results from operating activities fell 1.1% to US$3.2 million. The company has proposed a final dividend of 1 cent per share. In....
Read More >>

SIA kept at 'buy' with transformative journey improving profitability

SINGAPORE (May 23): DBS Group Research is maintaining Singapore Airlines at “buy” with $10.80 target price on expectations of improvement in SIA’s profitability in FY20 as it carries out its transformative journey and valuations stay undemanding. DBS credits SIA’s transformation programme for making a difference with revenue growth finally returning after years of stagnation and cost management efforts also bearing fruit. This is evident in SIA posting stronger profit performance in 2H19 compared to 1H19. In addition, although jet fuel prices have rebounded to US$85/bbl currently....
Read More >>