STP2 project quite big...need years to build...is normal the price drop due to uncertain...some said kerjaya have big chance to get the award to build the bridge connect to STP2 project...lets see
Posted by qqq3 > Feb 12, 2019 12:27 PM | Report Abuse
Rights issue to do business ( E&O )
not same as rights issue to pay debts ( Sapura)
Yep...E&O have some portion to repay borrowings too...not sure is new project debts or old project debts... "RM200 million raised will be used for repayment of borrowings, RM300 million for property projects, RM48.8 million for general working capital and RM1.5 million for estimated expenses of the proposed exercise."
Business or debt the same. If business dont go well, automatically become debt . So thats why 200m go and pay borrowings, then say 300m for property project, actually to pay debt later
If RI will bring down the share price, why would the directors or management chose this option knowing while they can get additional funds but the lost in market cap is actually higher? Why wouldn't they just sell the shares?
The company needs fund. It cheapest way is to dilute share. Just press a button. The existing shareholder? They don't care as they don't have much fund left.
They must be having problems in UK where the Brexit is dragging too long. Once the pound and property market shoots, E&O will be laughing.
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Shinnzaii
3,114 posts
Posted by Shinnzaii > 2019-02-12 11:49 | Report Abuse
wew...strong sell