Super Group: could get lift, after TDR issue was 20x oversubscribed, reflecting strong investor interest.
Super Group gaps up at open, +4.7% at $1.00 on hopes stock could fetch higher valuations as it finalizes pricing for its 40m TDRs at NT$14 each ($0.59) with 2 TDRs costing $1.18 representing 1 mother share or a 23.6% premium.
TDR price fixed at NT$14, which translates to $1.18/sh (24% premium to last close at $0.955). 2 TDRs = 1 SG-listed share. Issue price at 12x PE at big discount vs Taiwanese peers such as Want Want, Tingyi, with PEs of 21x, 31x res’ptvly…
Company will use $23.6m proceeds to build new HQ, prodn, warehousing facilities in Spore. The TDRs were issued at about 12x PE vs Taiwanese peers such as Wang Wang & Tingyi with PEs of 21x and 31x respectively.
DMG, which has a buy call with $1.06 target, see some headwinds going into FY11 given the 30% rise in Robusta coffee prices, which could result in weaker margins. TDRs start trading Sep 9.
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