Rex Int'l

Rex Int'l: ($0.615) Twin equity boost from prominent investors Alan Wang and Fidelity Shares of Rex International may get a boost after SGX filings showed that prominent investors Alan Wang and Fidelity Worldwide Investment (FIL) were the cornerstone investors in a recent share placement, leading them to become new substantial shareholders. Recall, Rex recently completed the placement of 168m new shares at $0.57 each. The net proceeds of $93.5m will be used to settle liabilities and working capital of Rex Technology Management (20%), for field development (60%) and to pursue existing and potential new business opportunities (20%). FIL picked up 70m placement shares, lifting its stake from 0.17% to 5.7%. Wang’s stake vaulted to 5.1% from 1.1%, after he took up 52m shares. Accordingly, parent Rex Commercial’s stake dropped to 44.1% from 50.9%, following the corporate action. The entry of two respected fund managers as substantial shareholders may lift sentiment in Rex’s shares. In particular Wang’s share transactions may be closely followed by some admirers. Wang is noted for his string of high-profile investments in stocks like HanKore, Memstar, Sarin, Sino Grandness, Asiatravel.com and UE E&C, all of which recorded significant share price outperformance subsequent his purchases. Rex trades at 2.5x proforma P/B.