Ezra suffers after unveiling $405.2m fundraising scheme

It lost 12% in two days.

Ezra’s share price suffered after it unveiled its $405.2m fundraising bid, with the stock losing 12% to $0.34 cents since its announcement on May 29.

According to analyst Low Pei Han of OCBC Investment Research, the market has already been expecting potential fundraising moves by Ezra given its upcoming financial obligations

Ezra plans to use 62% of the gross proceeds to repay $225m of fixed rate notes due in Sep this year, and 35% for repayment of $150m worth of perpetual securities.

“In our SOTP valuation, we assume that the maximum 2.02b new shares are issued in the rights issue, and as such lower our fair value estimate from S$0.47 to S$0.26 due to the dilutive effect,” she said.