OCBC Investment Research in a Mar 28 research report says: "Biosensors International Group (BIG) announced that it has obtained approval in-principle from SGX for the private placement of 216,325,800 new ordinary shares to Atlantis Investment Management Hong Kong Ltd and Ever Union Capital Ltd.
"The total placement represents approximately 19.55% of BIG's issued and paid-up share capital. The dilution factor works out to be 16.4%, which seems quite substantial, in our view. Nevertheless, we are confident that management would be able to efficiently utilise the proceeds to generate value for their shareholders.
"We adjust our DCF estimates to incorporate higher growth in its mid- to long-term profitability but also tweak our USD/SGD assumptions downwards due to persistent weakness in the U.S. dollar. Fair value revised to $1.32 (previously $1.36). MAINTAIN BUY."
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