The Singapore Market This Week

StockMarketBoardThe Straits Times Index (SGX: ^STI) had a slightly disappointing week. It slipped 0.7% 3,213 points. However, investors in CNA Group (SGX: 5GC) must have been hoping that Friday’s trading session wouldn’t end.

The company, which designs, implements and maintains automation systems and IT solutions for intelligent buildings and facilities, had requested a trading halt before the market opened on Tuesday morning. At the time its shares were S$0.14.

On Thursday, CNA announced that seven unrelated investors (three are investment-holding companies while the other four are private investors) had bought a total of 60 million shares worth S$7.25m at S$0.1208 in a private placement. This represents a 22% dilution for existing shareholders based on the last-reported share count of 270.8m.

Today, CNA requested the trading halt to be lifted and its shares resumed trading at S$0.19, up 36% from Monday’s close. The shares then climbed steadily to S$0.27 for a 97% gain.

Curiously, CNA, which is now worth north of S$83m, has had four consecutive profitless quarters in recent times, clocking up cumulative loss of S$3.5m. Perhaps the seven investors in the private placement saw much better times ahead, but that doesn’t mean retail investors should follow blindly.

Oil & gas explorer Kris Energy (SGX: SK3) ended its first day as a listed company on the mainboard with a small cheer as it closed at S$1.155, 5% higher than its IPO-price of S$1.10. Keppel Corp (SGX: BN4), another mainboard company with substantial interests in the offshore & marine engineering industry along with property development and infrastructure engineering, owns about 31% of the SGX-debutant following its IPO.

More IPOs to look forward to

Last week, newspaper publisher & property developer Singapore Press Holdings (SGX: T39) and real estate company Overseas Union Enterprises (SGX: LJ3) announced the launch of their Real Estate Investment Trusts. Both companies are looking to spin-off their properties into a REIT.

On Wednesday, SPH released its final flotation prospectus. The REIT will be known simply as SPH REIT and the offer for its units will end at 12pm on 22 July 2013. SPH REIT will be offering 83.98m units to the public at a price of S$0.90 per unit. The REIT is expected to start trading at 2pm on 24 July 2013.

Meanwhile, OUE’s final prospectus for its REIT was announced on Thursday. OUE’s REIT will be known as OUE Hospitality Trust. The public offer will end at 12pm on 23 July 2013. OUE has priced the REIT’s units at S$0.88 apiece. It is offering 51.14m units to the public. Trading for OUE Hospitality Trust is expected to start at 2pm on 25 July 2013.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chong Ser Jing doesn’t own shares in any companies mentioned.