SIIC

SIIC: Completed its 1b share placement to placement agents Jefferies and Credit Suisse at $0.158/share, 2.6% above the counter's closing price of $0.154/share. Given that the placement shares were fully snapped up less than a week despite being priced higher than SIIC's market price, we do not rule out that investors who took up the placement may look to accumulate more shares over the market. The new placement shares represent 10.4% of the China-based water treatment group's enlarged share base of 9,589.3m shares and will reduce its net gearing from 49.3% to 25.8%. Post placement NTA/share will improve from 6.56¢ to 7.51¢. At the current price, SIIC is valued at 30.7x consensus forward P/E and 2.6x P/B.