Last time Instanco proposed Private Placement on 30 Nov 2015 and completed on 17 Dec 2015. So, OWG proposed it on 18 Jan 2016 and should be completed on 5 Feb 2016.
Private placement is 10% shares given to strategic people at 10% discount using the average price of 5 trading days. Usually during this process, the share price is controlled by the management not to let it fly because if too expensive no one wants to take up the shares.
The current (18 Dec 2015) assumption of a blended ticket rate of RM15 (@1m visitors per annum) for the observation deck is conservative. Based on comparative pricing for tickets in KL Tower and Petronas Twin Towers, Komtar could potentially earn a blended ticket rate of RM40. This would lift its FY16-18 EPS forecasts by 11-46% and could raise the share price valuation to RM6.95.
This has not imputed any revenue and profit contributions from the themed attractions at Komtar in the forecasts as ticket prices have not yet been finalized. Based on OWG’s historical ticket prices in Genting Highlands, an average RM30 a ticket is not unreasonable. At pretax margin of 30%, the themed attractions division could lift FY16- 18F EPS by 10-25% and could raise the share price valuation to RM6.03.
Komtar opening could lift OWG to RM8 if include the upside potential both from higher ticket prices and the themed attractions, the FY16-18F EPS could rise by 16%-71%, which could lift the share price valuation to RM8.
Did anyone knows owg will plan for latest additional floor of 3,4,5,6 n 66 in komtar ? Retails ? Will owg follow genting to bring in premiums outlets (duty free) to penang ? Let me know if u hav insider news.
OWG management is smart. They are waiting for the market sentiment to improve. Then only they will fix the private placement price. They have one month to to decide.
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....
crystal168
1,663 posts
Posted by crystal168 > 2016-01-19 14:12 | Report Abuse
:)