Yoma

Yoma: Yoma is issuing 135m new shares at $0.70 each via a private placement to fund its expansion plans. The placement price represents a discount of ~8.4% to the volume weighted average market price of $0.7642 on 25 Jun ‘14. Net proceeds of $92.83m will be used to help fund the growth and expansion of the group’s various businesses with over half being earmarked for its real estate division and the remainder for its businesses in telecommunication towers, automotive and agriculture and logistics. Post deal FY14 NTA will rise to 35.41¢ from 31.01¢ while its EPS will fall from 1.42¢ to 1.13¢. DBS and CLSA as the joint bookrunners for this placement exercise. This comes after the Myanmar-based group posted in line 4QFY14 results, led by robust sales from its flagship projects at Star City and Pun Hlaing Golf Estate, which triggered a wave of Buy calls from both local and foreign brokers. Management is optimistic about its growth prospects in Myanmar and believes that its property projects will continue to benefit from the country’s ongoing urbanisation as well as the housing mismatch in supply and demand. Yoma currently trades at 52.5x forward P/E and 2.3x P/B. Overall, the street has 4 Buy and 1 Hold rating with a consensus TP of $0.89