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Wed, Sep 09, 2020-11: 23 am
INVESTORS racked up Sembcorp Industries (SCI) shares on the counter’s first trading day, excluding rights, while its maritime arm’s shares plunged.
On Wednesday, SCI rose to Singaporean $ 1.17 at 11am, with 32.3 million shares changing hands, making it the second most traded by value on the Singapore exchange in the morning.
Its latest price is 21.6 percent or S $ 0.208 above its notional price without rights of about S $ 0.962, calculated based on the closing price of S $ 1.91 on Tuesday.
The SCI had peaked at S $ 1.20 about 10 minutes after the opening bell on Wednesday, and again at 9.46 am, according to Bloomberg data.
The conglomerate said Monday that its shareholders would receive 4,911 Sembcorp Marine (SMM) shares for every SCI share it owns.
Meanwhile, SMM fell 8.8% or S $ 0.017 to trade at S $ 0.176 on Wednesday at 11am. M.
It achieved the highest volume traded on the stock exchange, with 78.5 million shares changing hands.
In the first 15 minutes of early trading, the maritime company’s shares had sunk to a low of S $ 0.167, down 13.5 percent or S $ 0.026 since Tuesday’s close.
Last month, shareholders gave the green light for SMM and its parent SCI to proceed with their two-part proposal, which includes a spin-off.
Analysts have said that SCI now looks more attractive without SMM weighing it down, especially when evaluated against some of its peers.
According to SCI’s closing price on Tuesday, the stock has gained 3.2 percent since shareholders approved the spin-off on Aug. 11, and analysts are expecting more earnings over the next 12 months. Nine of the 11 calls for SCI are “buy” calls, according to Bloomberg data.
CGS-CIMB analyst Lim Siew Khee told The Business Times: “Relating to pure power names, SCI is more diversified and also operates in different markets in addition to a variety of products.
“It’s not easy to compare them to their regional peers, but since they are now seen as a purer game in the market, investors could start giving them that credit.”
READ MORE: Sembmarine’s separation should make Sembcorp attractive in front of its peers
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