Triyards

Triyards: makes its trading debut today, with 295m shares admitted via introduction on the SGX Mainboard. Ezra will hold a 67% stake, while 33% of shares have been distributed-in-specie to Ezra shareholders on a 1-for-10 basis. The Street has a wide range of TP for the stock. These are the following price points we have encountered. DBSV estimates a fair value of $0.60, OCBC est $0.78, CIMB est $0.86. We note Ezra cum-price was $1.20, and ex-price was $1.145. As such the market implied valuation for Triyards was $0.55. UOBK had an unrated rpt yday. Says Triyards is a proxy to rising liftboat demand. Triyards is an engineering and fabrication solutions provider with 2 yards in Vietnam and 1 fabrication facility in Houston, US. Triyards focuses on the construction of advanced offshore construction and support vessels (OCSV) and self-elevating units (SEU), which incl liftboats and small drilling and pdtn jack ups. With Ezra still retaining a 67% stake in Triyards, Triyards will be well positioned to tap on ezra’s fleet expansion plans for new build and maintenance contracts. Triyards will embark on growth through, a) expanding its range of SEUs and OCSVs, b) expansion in Brazil and Australia, and c) diversification into new pdt categories, such as high-speed aluminium commercial and naval vessels. UOBK believes Triyards is likely to acq fab yards in the region to expand capacity and upgrade its capabilities.