Short selling of E&O suspended after breaching price limit


Affin Hwang Capital Research said the long-term prospects for E&O remains good with the scheduled completion of 253-acre Seri Tanjung Pinang Phase 2A (STP2A) by September 2019.

KUALA LUMPUR: The short selling of property company Eastern & Oriental was suspended in late Tuesday morning session after its share price fell more than 15 sen or 15%.

At 11.45am, it was down 20 sen to 89 sen in active trade. The short-selling activities will only resume on Wednesday.

The company had asked investors for RM550.3mil to fund its property development projects.

It aims to raise as much as RM550.3mil via a private placement and renounceable rights issue to fund its property development projects.

The proposed private placement will involve the issuance of up to 10% of E&O’s issued share capital of 1.31 billion shares.

The renounceable rights issue will include free detachable warrants on an issue price and basis to be determined later.

Affin Hwang Capital Research said it believes the overhang from the equity issuance will dampen sentiment on the stock in the short to medium term. 

“But the long-term prospects for E&O remains good with the scheduled completion of 253-acre Seri Tanjung Pinang Phase 2A (STP2A) by September 2019. Maintain Buy,” it said.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Business News

KLCI takes pause on slight profit-taking
More details on financial help for Covid-19 hit SMEs
MIDF Research upgrades banks to positive from neutral
Ramsay Sime Darby Health Care appoints new group CEO
Weaker 4Q GDP after November PMI dips
CGS-CIMB Research ups end 2020 KLCI target to 1,628
Solid PMI in Asia drives ringgit higher by 70bps vs US$
Xiaomi raises US$4b selling shares, bonds
Top Glove slumps to near two-week low as woes mount
Tenaga, Top Glove and Petronas Chemicals weigh on KLCI

Stories You'll Enjoy