Marco Polo Marine (MPM): halt lifted at 9am this morning.
Effectively a share placement of 35m new shares and 16m existing shares to institutional investors at $0.43/sh (8.5% discount to last close at $0.47). The new shares represent 11.4% of current shares out, and will raise $14.5m net proceeds, of which 70% to fund capex for MPM’s offshore business, and remainder for working capital. Recall mgt has plans to increase its fleet of vessels to 140 over next two yrs, from 84 currently….
Based 9MFYSep10 results, NAV/sh will increase marginally to $0.305, while EPS will be reduced to 4.8cts from 5.3cts, which translates to annualized 7.3x FY10 PE.
Vendor shares are held by Nautical Int’l which owns 66% stake in the company. Nautical is owned by certain directors of the company.
Kim Eng has a Buy call with $0.62 target.
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