Hot Stock Evergreen Fibreboard up 2.34% on private placement plan

by **Cals** Mon 23 Nov 2015, 22:03

Hot Stock

[size=28]Evergreen Fibreboard up 2.34% on private placement plan

By Surin Murugiah / theedgemarkets.com | November 23, 2015 : 9:33 AM MYT

KUALA LUMPUR (Nov 23): Shares of Evergreen Fibreboard Bhd ([You must be registered and logged in to see this image.] Valuation: 0.30, Fundamental: 1.00) rose 2.34% in early trade today after it announced last Friday that it intends to undertake a private placement of up to 51.3 million new shares or 10% of its issued and paid-up share capital to raise up to RM100.03 million, to finance its expansion, repay borrowings and for working capital.

At 9.12am, Evergreen rose 5 sen to RM2.19 with 1.70 million shares traded.

While the issuance price is yet to be fixed, based on the indicative issue price of RM1.95 per placement share, it could raise up to RM100.03 million, its filing on Bursa Malaysia today showed.

Evergreen also proposed to undertake a bonus issue that will involve the issuance of up to 282.14 million bonus shares on the basis of one bonus share for every two Evergreen shares held to reward its shareholders and enhance the stock's marketability and trading liquidity.

This will be implemented after the completion of the proposed private placement in a single issuance.

In a separate report, the group's net profit almost tripled to RM27.59 million for the third quarter ended Sept 30, 2015 (3QFY15) from RM10.08 million a year ago, as it gained from a strengthened US dollar, lower cost of glue, higher operational efficiency as well as synergistic cost savings.

The group recorded a foreign exchange gain of RM8.02 million in the latest quarter, compared to RM1.55 million in the previous corresponding quarter.

Revenue for the quarter rose 9.2% to RM256.04 million from RM234.49 million in 3QFY14.

Net profit for the nine-month period (9MFY15) came in at RM71.53 million, as compared to a net loss of RM14.2 million a year ago, while revenue increased 8.5% to RM748.13 million from RM689.82 million in 9MFY14.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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