Swiber

Swiber: Swiber proposed to raise up to $45m from a renounceable one (1) Rights Share for every two (2) existing ordinary share, priced at $0.15/share. Newshire Capital, an investment vehicle of Swiber's directors, and substanstial shareholder, Pang Yoke Min, have given their undertaking to subscribe for up to 50% of the maximum number of rights. The fund raising is intended to aid in Swiber's balance sheet, which stood at 1.95x as at 3Q14. Post rights, its net gearing will improve to 1.79x. At current valuation of 0.22x, Swiber is trading at a deep discount to peers due to its weaker balance sheet, as well as gloomy operating prospects in a low-oil-price environment. Maybank-KE maintains its HOLD rating with TP of $0.35 for now, pending confirmation on the number of rights to be issued.