Keppel Land: +8.6% yday to close at new 2-yr high of $5.05. To issue $500m 5-yr 1.875% convertible bonds around 29 Nov. Conversion price of $6.72 is at 33% premium over last closing price. Max dilution is 5%. Net proceeds to be used to refinance existing debts, for acquisitions.
Separately, KepLand acquired an additional 11.9% stake in Ocean Properties for $107m, raising its interest to 87.5%...
Stock has been seeing strong momentum of late. However technical indicators are now in overbought territory, and suggests a pull back may be due in the near term. Valuations starting to look stretched, as stock price now just 10% below KE’s target of $5.60, the most bullish in the Street. Rest of Street has targets ranging $3.85 - 5.25.
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