Yinson falls to low of RM1.72 after fixes placement price

by **hlk** Fri 01 Jul 2011, 20:52

KUALA LUMPUR: Shares of YINSON HOLDINGS BHD [] fell to a low of RM1.72 on Friday, July 1 as investors’ interest waned after it fixed the price for the placement shares at RM1.65.

At 3.38pm, it was down 12 sen to RM1.77, off the earlier low of RM1.72.

The FBM KLCI fell 1.18 points to 1,577.89. There were 560.98 million shares done valued at RM847.72 million. There were 283 gainers, 370 losers and 331 stocks unchanged.

On Thursday, the company announced that it would place out 10% of the paid-up share capital or 6.885 million new shares at RM1.65. This was a discount of about 9.34% over the five-day volume weighted average market price of the shares up to June 29 of RM1.82.

The share price had risen recently after Yinson and its partner Petrovietnam Technical Services Corporation secured a US$331.15 million (RM1.01 billion) to provide a floating storage and off-loading (FSO).

The total contract value of RM1.01 billion was for 20 years, of which RM626.81 million was for the firm period of 10 years and the remaining RM383.20 million was for options to extend for another 10 years in four different periods.

Yinson will have a 49% stake in JV and PTSC 51%. Yison’s cash injection in the JV is expected to be RM55.125 million.

To finance it, part of it would be from a renounceable two-call rights issue of up to 131.85 million rights shares on the basis of three rights shares for every two existing shares held.

Yinson posted net profit of RM7.14 million for the quarter ended April 30 versus RM4.67 million a year ago. Revenue was higher at RM196.80 million compared with RM184.31 million.

However, Yinson has only cash and bank balances of RM4.74 million as at April 30, 2011 while receivables are RM260.23 million. Short-term borrowings, categorised under current liabilities, are RM138.88 millio