@kangedd From the information I have from the IB side, it seems like they already secured one investor to take 8% of the 20%, the remaining is unknown yet.
But yes, new way to secure funding and solid looking prospects for now.
don't give up guys, the price may not looking good now, but as long as it holds at 0.005 and above I believe ages is still the most potential counter in bursa, strong support level at 0.005 so please keep buying more
cartooninvesting and icon2021 u guys must be from the ex management to spread fake news and create fear here, get ready to be bombarded by the new management's army in this forum
Guess you never factor In covid as one of consideration. Lol...if so many red flag, what don't you complain harta air asia. So many were under challenging during covid period. Lol
hahaha, good comparison to airasia and harta, why dont u say ages is fundamentally as strong as maybank and higly possible for it to become top 30 counter with largest market cap in malaysia?
What you need to know about AGESON’s private placement
Investors are all eyeballing the recovery of construction sector as well as property sector, as REDHA has estimated the targeted development expenditure (DE) for Budget 2022 to be between RM60 billion and RM65 billion and may feature the roll-over of unutilised DE for 2021.
According to CGS-CIMB's research note today, what is key for Budget 2022, in REHDA's view, is a clearer implementation plan relating to the RM400 billion DE under the 12th Malaysia Plan (12MP), as the overall industry rail contractors and suppliers would be zoning down on the status of the Mass Rapid Transit (MRT3) project, which was missing from the 12MP.
"A short-term positive is, with mobility restrictions being lifted, the construction sector, including contractors with property development divisions immediately benefitting from the stabilisation of the industry's domestic supply chain in the fourth quarter of 2021 (4Q2021)," the research house said.
Based on the macro-outlook for Malaysia, construction players have an extremely good chance to thrive and increase their order book – with tender book size increasing as a whole. This would definitely bode well for deep valued counter like AGES, with low single digit PE.
Coupled with the bright prospects, AGES had announced to undergo a private placement of 20% placement shares to strengthen the balance sheet and financial strength of the company.
Aside from working capital required for existing and potential new projects from the Budget 2022, we could see that AGES is keen to free up their gearing by repaying to RHB’s loan, which would result in an interesting saving of approximately RM2.13 million over the repayment period. Do bear in mind that upon settling off the RHB loan, the company would have plenty of space for additional debt headroom.
But why private placement, instead of rights issue?
In Malaysia, investors generally do not favour removing money from their pocket to fund the company further – even if its for the good of the company. Hence, a private placement to selected and sophisticated investor could better solve the problem, especially when AGES had already secured 8% of the private placement out of the 20% total size, to strategic investor.
I would also like to highlight that something big must be brewing in AGES. They had secured a RM95.2 million residential development project in Selangor aside from their 475 acres land Perak development – which part of it will be pre-sold to China counterpart for RM279.0 million in cash. Given the cash pile that the company have now, I suspect that they are in tender for something big in the pipeline.
Moreover, the share price movement after the private placement is favouring the company future growth plans. I expert a sharp upward movement once the “hidden prospect” is announced soon.
Ageson: To raise RM18.7m via private placement to repay borrowings. Ageson proposed to undertake a private placement of up to 20% of its issued shares to raise RM18.7m to repay borrowings. The proposed private placement will involve the issuance of up to 259.73m Ageson shares. (The Edge)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
davors
889 posts
Posted by davors > 2021-10-27 15:11 | Report Abuse
just for record....
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Mar 3, 2021 12:06 PM | *** AGES was 0.130
wait for 0.080 and below~?
Jun 14, 2021 2:40 PM | *** AGES was 0.120
wait 0.095 then 0.070...
Jul 14, 2021 12:35 PM | *** AGES was 0.090
sneakpeek, it potential to further flush out retailer by pushing down to 0.070 or lower... so be careful...
Sep 10, 2021 1:23 PM | *** AGES was 0.090
next month might touch 0.070.... be cautious ya...
Oct 26, 2021 4:22 PM | *** AGES was 0.075
end of december might reach 0.050... careful guyz...
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my comments history record....
Let's see where it goes in a month or two...
Hope i am wrong if you already masuk this counter..
Good luck guys...