KSH Holdings

KSH Holdings: Placement exercise to raise $13.9m. KSH recently conducted a placement for 30.9m new shares and 4.1m existing treasury shares at 40.8 S-cents per share. This was at a 5.2% discount to the weighted average traded price of 43.0 S-cents on 11 Mar 2013 and raised S$13.9m of capital for the group. Shortly after the placement, KSH deployed S$1.9m to increase its stake in its Beijing condominium project (Liang Jing Ming Ju, Phase 4) from 26.24% to 45.00%. Pending further visibility on capital deployment, OCBC overall neutral on this placement but note it would increase the size of the public float and possibly improve the counter’s trading liquidity, which has been low historically. House Maintain BUY on KSH, but fair value estimate dips mildly to $0.61 from $0.62, due to a mild dilution effect, but forecast for buoyant earnings growth over FY13-14 remains unchanged.