Post Reply
9721-9740 of 10484
Midas is pleased to announce that it has successfully raised gross proceeds
of S$90.6 million through a private placement of 120 million new ordinary
shares (the "Placement Shares"), representing 14.2% of the existing share
capital of the Company, at the price of S$0.755 per share.
Net proceeds from the placement amounted to approximately S$89.4 million,
after deducting commission and estimated expenses incurred in connection
with the placement. The Group intends to utilise approximately S$81.0 million
for the expansion of its aluminium alloy production capacity (including the
purchase of two new production lines), with the balance of approximately
S$8.4 million to be utilised for general corporate and working capital
requirements.
What is Private placement?
Private placement financing is another unique method for a business to
obtain capital, and provide cash infusions at the same time to be used to
increase sales, or to cover the cost of new equipment or software. As with
other sources of financing, private placement has to be done properly to
ensure your business get the most benefit possible. Private placement is
a perfect source of financing for companies which are growing.
Private placement is the investment of money from private investors who
granted shares in the company. Through the purchasing of stocks or bonds
a company will obtain the capital they need to continue expanding. With a
private placement the company selling their stocks and bonds most of the
time does not have to register with the Securities Exchange Commission.
This reduces the amount of extra work involved, or needed. It is the most
popular form of Regulation D non-public investing. Another benefit is that
private placement is cheaper most of the time than actually taking a
company public.
Other benefits of private placement include:
• Flexible financing needs for companies of all sizes including capital
from 100 thousand up to the millions.
• Investors don’t look for quick profits and high returns on their investments.
They are ok with a return of 10 to 20%.
• Capital can be raised much faster.
• The cost of obtaining the capital is quite a bit less.
give me bad posts also no use la ... this is the fact wat ...... do not go in first, as still trading around the placement share px ....
aleoleo ( Date: 16-Jul-2009 11:25) Posted:
|
On the contrary, I think this latest Midas news is a good thing.
Rumour come true
rextay ( Date: 26-Jun-2009 09:35) Posted:
|
Latest news fm sgx
MIDAS’ SHARE PLACEMENT MEETS WITH OVERWHELMING RESPONSE; S$90.6 MILLION RAISED TO FUND EXPANSION PLANS
- Net proceeds to be used mainly for the expansion of aluminium alloy production capacity;
- Poised to capture growing business opportunities in the PRC and global railway market
Singapore, July 16, 2009
The placement received strong demand from investors, including tier one global funds, long and hedge funds and support from existing shareholders.
Midas had earlier announced that it had entered into a placement agreement ("Placement Agreement") with DBS Bank Ltd. ("DBS") to place out up to 100 million ordinary shares ("Shares"), with an option to place out up to an additional 20 million Shares (the "Upsize Option"). In view of the strong support received from institutional investors and book several times covered, DBS exercised the Upsize Option in full and placed out all 120 million Placement Shares at S$0.755 each.
The placement price per share is S$0.755, being a discount of approximately 7.0% to the volume weighted average price for trades done on the Singapore Exchange - Mainboard-listed Midas Holdings Limited ("Midas", and together with its subsidiaries, "the Group") (麦达斯控股有限公司), is pleased to announce that it has successfully raised gross proceeds of S$90.6 million through a private placement of 120 million new ordinary shares (the "Placement Shares"), representing 14.2% of the existing share capital of the Company, at the price of S$0.755 per share. Page 2 of 4
Securities Trading Limited for the full market day of July 15, 2009, being the preceding market day on which the Placement Agreement was signed.
Net proceeds from the placement amounted to approximately S$89.4 million, after deducting commission and estimated expenses incurred in connection with the placement. The Group intends to utilise approximately S$81.0 million for the expansion of its aluminium alloy production capacity (including the purchase of two new production lines), with the balance of approximately S$8.4 million to be utilised for general corporate and working capital requirements.
Said Mr Patrick Chew (
We had recently clinched over RMB1 billion worth of contracts, including three maiden fabrication contracts. With our established track record in the PRC and strong working relationships with major rolling stock companies in the country, we are confident that the expansion of our aluminium alloy production capacity will enable us to capture further lucrative growth opportunities in the PRC and international railway markets."
The share capital of Midas will increase from approximately 844.4 million to approximately 964.4 million after the issuance of the 120 million Placement Shares. 周华光), CEO of Midas: "The strong take-up rate of 120 million Placement Shares is an indication of investors’ confidence in Midas’ business prospects and its underlying fundamentals.
About Midas Holdings Limited
Founded in 2000, Midas is today a leading manufacturer of aluminium alloy extrusion products, primarily for the rail transportation sector in the PRC. The Group operates three business divisions; namely, Aluminium Alloy, PE Pipe and Agency and Procurement, which are strategically located in the PRC to capitalise on the Page 3 of 4
opportunities arising from the rapid development of the PRC’s rail transport and infrastructure sectors.
In July 2009, Midas was awarded the prestigious International Railway Industry Standard (IRIS) certification, which represents the most stringent requirements on quality standards in the global rail transportation industry and is recognised by railway industry players worldwide. Midas is the first company in the PRC to receive the IRIS certification in its business category.
Midas is currently a PRC certified supplier to the world’s largest train manufacturers, ALSTOM SA, Siemens and Changchun Bombardier. In addition, it is a preferred supplier for Alstom Transport’s projects globally, under Alstom’s "Leading Partners 150" programme.
Midas’ customers include ALSTOM Transport SA, Siemens International Trading Ltd, Bombardier Transportation, Changchun Railway Vehicles Co., Ltd,
Since 2003, Midas has been involved in many high profile rail transport projects in the PRC. In addition, it has also successfully exported its products to the international market including Europe, Middle East, Korea and Singapore since 2004.
Besides its core business, Midas has a 32.5% equity stake in a Sino-foreign joint venture, Nanjing SR Puzhen Rail Transport Co., Ltd, to engage in the development, manufacturing and sale of metro trains, bogies and their related parts. CNR Tangshan Locomotive and Rolling Stock Works, Nanjing SR Puzhen Rail Transport Co., Ltd and CSR Zhuzhou Electric Locomotive Co., Ltd. Page 4 of 4
In September 2007, Midas’ Aluminium Alloy Division was named "2007 China’s Top Brand" by the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China ("AQSIQ") (
Midas was also named a Forbes Asia’s Best Under A Billion Company consecutively for three years from 2006 to 2008.
ISSUED ON BEHALF OF : Midas Holdings Limited
BY : Citigate Dewe Rogerson, i.MAGE Pte Ltd
1 Raffles Place
#26-02 OUB Centre
SINGAPORE 048616
CONTACT : Ms Chia Hui Kheng / Karin Xiao
at telephone
DURING OFFICE HOURS : 6534-5122/ 530-7133 (Office)
AFTER OFFICE HOURS : 9781-5913/9827-5226 (Handphone)
EMAIL : huikheng.chia@citigatedrimage.com
karin.xiao@citigatedrimage.com
082/09/007/MHL
July 16, 2009 国家质量监督检验检疫总局).
After counting, the average price is about 0.9cts lower which is about $0.81/ share....should not have great impact on the price...
me too blur blur, can some expertise pls enlighten?? read this shld be accurate
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_750E170F20E5EA32482575F5002E5511/$file/Announcement-Placement.pdf?openelement
What are the implications and your views please?
ericsim ( Date: 16-Jul-2009 16:54) Posted:
|
MIDAS:TOP UP PLACEMENT OF 100M NEW SHARES WITH UPSIZE OPTION of 20M
ISSUER: Midas Holdings Ltd (Bloomberg: MIDAS SP | Reuters: MIDA.SI)
TYPE OF OFFERING: Top-Up Placement of New Shares (on best effort basis)
NO. OF OFFERING SHARES:
Base Offering *: 100m new shares (11.8% of the company's share capital)
Top up option: Up to 20m new shares (14.2% of the company's share
capital including the top up option)
* If the demand is less than the base offering, the issuer will have the
right to decide whether to proceed
INDICATIVE PRICE:S$0.74 - S$0.76 per share which represents discount of
7.3% - 9.8% discount to last closing price of $0.82 on 15 July 2009
PROCEEDS:S$74m - S$76m (base offering); S$88.8m - S$91.2m (including top
up shares)
ROLE OF DBS BANK: Sole Placement Agent
BOOKBUILDING PERIOD:
Close of Bookbuilding: 10pm on July 16, 2009 - Singapore time (all
locations)
Trade date/Allocation: Friday, July 17, 2009
Settlement: By 8.30 am (Sin) on July, 22, 2009
INDICATIONS OF DEMAND: Demand to be reflected in no of shares or SGD
SELLING RESTRICTION:
Section 272B of Securities and Futures Act
ISSUER: Midas Holdings Ltd (Bloomberg: MIDAS SP | Reuters: MIDA.SI)
TYPE OF OFFERING: Top-Up Placement of New Shares (on best effort basis)
NO. OF OFFERING SHARES:
Base Offering *: 100m new shares (11.8% of the company's share capital)
Top up option: Up to 20m new shares (14.2% of the company's share
capital including the top up option)
* If the demand is less than the base offering, the issuer will have the
right to decide whether to proceed
INDICATIVE PRICE:S$0.74 - S$0.76 per share which represents discount of
7.3% - 9.8% discount to last closing price of $0.82 on 15 July 2009
PROCEEDS:S$74m - S$76m (base offering); S$88.8m - S$91.2m (including top
up shares)
ROLE OF DBS BANK: Sole Placement Agent
BOOKBUILDING PERIOD:
Close of Bookbuilding: 10pm on July 16, 2009 - Singapore time (all
locations)
Trade date/Allocation: Friday, July 17, 2009
Settlement: By 8.30 am (Sin) on July, 22, 2009
INDICATIONS OF DEMAND: Demand to be reflected in no of shares or SGD
SELLING RESTRICTION:
Section 272B of Securities and Futures Act
placement of MIDAS share @ 76c
From Kim Eng: New TP of $1.10, based on 18x FY10 P/E
From CIMB: Target price is S$0.88, and translates into 15x CY10 P/E
This is what i had for this counter :
Why the TP so much different?
| 16 Jul 2009 Singapore |
|||
| Midas Holdings Ltd | |||
| Company update - 4Q09 catalysts - by Lawrence Lye | |||
| (MIDAS SP / MIDA.SI, TRADING BUY - Upgraded, S$0.82 - Tgt. S$0.88, Industrial Goods and Services) | |||
| Midas has clinched over Rmb1bn worth of contracts, including Rmb98.8m for downstream fabrication. China's Ministry of Railways is expected to call for tenders in 2H09 for 420 high-speed trains. The aluminium extrusion contracts won by Midas so far are related to the first 100 trainsets for the Beijing-Shanghai Line. The second tender for 320 trainsets is expected to close at end-Jul 09, potentially providing another slew of contracts in 4Q09. We maintain our forecasts and assumptions, but have reduced our WACC to 9.5% from 11.2% to reflect an improving business outlook and higher risk appetite. Our new DCF-derived target price is S$0.88, up from S$0.70, and translates into 15x CY10 P/E, in line with China-based peers. Upgrade to Trading Buy from Neutral. We caution, however, against over-pricing Midas on the back of the current market euphoria, despite its strong fundamentals. | |||
Midas Holdings
July 15 close: $0.82
KIM ENG, July 15
We have adjusted our FY10 net earnings by 10 per cent and derive a new TP of $1.10, based on 18x FY10 PE.
BUY
CONTRACTS have continued coming in since our last update: Since our last update on June 22, minor contracts worth a total of 277.8 million yuan (S$59.1 million) have continued to pour in for Midas. This brings the total value of contracts won in the past month to 1.05 billion yuan. Having highlighted earlier that contracts are likely to come in as its third extrusion line nears operation, we are encouraged by the intensity of contract momentum.
Orderbook - from hopes to reality: Including these contracts, we estimate net orderbook to be about $300 million currently. To put things into perspective, we believe Midas' three extrusion production lines are fully booked till FY10 and 70 per cent booked for FY11. While we have already factored this type of utilisation rates in our earlier forecasts due to the expected strong demand, a firm orderbook now has lent greater credence to our revenue and profit models.
Downstream fabrication is next: Of these contracts, 121.8 million yuan is for downstream fabrication work. Midas has installed the first fabrication line, which will likely start operations in H2 2009. Since this is still a new venture operationally, we have adopted a conservative view and our current estimates only factor in the current magnitude of contracts won.
A cut above the rest: Midas also announced that it has been awarded the International Railway Industry Standard certification, which is the first for a PRC company in its business category. Together with its status as the only highest grade certified supplier to all three major international train manufacturers, we believe that Midas is still ahead of the pack in its arena.
More rabbits in the hat: With extrusion capacity largely accounted for, we now believe further upside to our earnings estimate will likely come from more downstream fabrication contracts, NPRT (Nanjing SR Puzhen Rail Transport Co) contracts and possible addition of third and fourth extrusion lines. We have adjusted our FY10 net earnings by 10 per cent and derive a new TP of $1.10, based on 18x FY10 PE.
BUY
From the previous news lor....my friend holding on the close to 200 lots....
Just wonder how do u know about that?
ronleech ( Date: 16-Jul-2009 14:01) Posted:
|
Midas order book full, currently cannot fulfill order due to factory space and production line constrain...but donno how true
why would they want to buy a news factory, or do you mean a new factory
ronleech ( Date: 16-Jul-2009 09:27) Posted:
|
depend place out to who..which institution and what price.. placement shares are not neccessary a bad thing.. New reputable institution come on board will help to push or stabilise the shares price. You can look at shares without institutional interest, share price dun move de...
Institution investors do not invest to make loss.. Again what kind of time frame you are looking at short term or long term.. all depends on market condition also
If place out to a big train maker, might be looking at takeover deal at a later stage. so many co place shares out still manage to eke out gain eg. capitalmall trust to ntuc fairprice 120 plus now about 150
aleoleo ( Date: 16-Jul-2009 11:25) Posted:
|
placement shares ......... this will dilute the share price again ..... dun believe ? lets see later .......
Heard it will announce it will buy a news factory for about 150ms....donno how true....