Posts: 3,582
Threads: 6
Joined: Oct 2012
Reputation:
93
Agree that the project win and the loan is attestation of their execution even before this oil recovery
Rather low profile oil & gas company that I only met once before the industry unraveled
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
Posts: 2,931
Threads: 64
Joined: Aug 2011
Reputation:
72
hi dydx,
Kim Heng tried to sell 1 of its 2 yards last year but it did not materialize. So yes, there will probably be some fund raising via equity soon.
But the point I want is to say is that it is not a question of "IF" but "HOW and WHEN". The cost of equity would be very high, as from 2020 to mid 2021, its share price was way below NAV and any rights/placement would have to be done at even deeper discounts.
With a high oil price and the chest beating war cries into the renewable energy sector, any rights/placement issue would have lower cost of equity moving forward. While I can't prove it directly but I do suspect that having a private equity fund as a substantial shareholder and then represented on the BOD, has indirectly aided OPMIs.
Posts: 2,743
Threads: 23
Joined: Mar 2013
Reputation:
25
(06-06-2022, 10:43 AM)Ben Wrote: https://www.theedgesingapore.com/news/de...cs-capital
I believe Credence Capital is a pre IPO investor in Kim Heng. By divesting their stake at $0.105, are they in the money already?
More importantly, Hildrics Capital must have done their sum and bought at $0.105. If we just assume that Hildrics Capital has a target of 20% gain, that would give a target price of $0.105*1.2=$0.126. Is that reasonable?
Interesting to see if KH has managed to turn around when they announce their 1H results.
20% target pa more likely. Can guess what Hildrics will do - Refinancing/ Acq / Charter-in
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster