Analysts ‘neutral’ on Unisem private placement

Unisem, an Outsourced Semiconductor Assembly and Test (OSAT) service provider, has faced the issue of share liquidity since early 2019 after China-based Tianshui Huatian Technology Co Ltd acquired a majority stake at RM3.30 per share.

PETALING JAYA: Analysts are generally neutral on Unisem (M) Bhd’s proposed private placement of up to 10% of its share base, which is equal to 72.8 million new shares to be issued.

KAF Equities noted that the private placement would result in an earnings per share (EPS) dilution for FY21 to FY22 of around 10% due to the enlarged share base, from 733.9 million shares to 806.6 million shares.