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Singapore’s Big Movers For The Day

It was a rather quiet day for the local market as the Straits Times Index (SGX: ^STI) closed 0.05% up to 3,180.92 points. STI’s components ended with rather mixed results with the same number of gainers (14) and losers (14) for the day. There were some big movers for the day. Let’s take a look at some of them.

Asiasons Capital Limited (SGX: 5ET) soars up a whopping 54.72% from S$1.325 to S$2.05 for the day. It appears that the market is exuberant on its proposed placement of new shares to a total of 4 new subscribers which will hold a collective 17.68% of the enlarged share capital of the Company:

1)      Carnegie Hall Group LLC (CHG) invests specifically in resource focused deals in the South-East Asian region.

2)      Spring Road Advisors LLC (SRA) uses both a fundamental and quantitative analysis to identify investment opportunities in the Asian region.

3)      Partner Growth Capital LLC (PGC) is a New York based investment company which seeks to invest in businesses with strong assets across the globe.

4)      Platinum Partners Value Arbitrage Fund L.P. (PPVA) is a multi-strategy hedge fund based in New York with firm assets under management in excess of US$700 million.

The company stated that the rationale to issue shares to these prominent asset management funds is to raise funds to strengthen its financial position and capital base. The proceeds will allow Asiasons to capitalize on potential opportunities, especially in the mineral and oil & gas industries.

It looks as if the company has already taken action with a proposed acquisition of 27.5% stake in Black Elk Energy Offshore. The firm owns considerable oil and gas resources in the Gulf of Mexico and is located in the U.S. – having a mature crude oil development and production industry with high barriers of entry to new players.

On the other hand, ISR Capital Limited (SGX: 5EC) also flew up 48.15% today to S$0.60. ISR, formerly known as Asiasons WFG Financial Ltd, may have piggy-backed on Asiasons Capital success through its affiliation with them. Datuk Jared Lim Chih Li, the non-executive director of ISR, is also the managing director of Asiasons Capital Limited and co-founder of Asiasons group.

ISR is principally engaged in the provision of a wide range of capital market advisory and other related services which can be classified as seen:

  • IPO Advisory;
  • ECM Syndication and Underwriting;
  • M&A and Corporate Advisory; and
  • Public and Investor Relations.

In addition to providing the services above, the group is also focused on building its investment portfolio with the aim of allowing the company enjoy dividend income or investment gains through trade sale or IPO.

The last stock to sum up the trio would be Ezra Holdings Limited (SGX: 5DN), who slid by 7.37% to S$1.20. The group is a leading offshore contractor and provider of integrated offshore solutions. Its business activities are carried out by its offshore support services division and marine services division which include subsea construction and maintenance, drilling support, towing and mooring etc.

Its decline today is most likely profit taking from its previous week of gains, which saw its shares skyrocketed 45.5% in that period. Shares of the company had jumped from S$0.89 on 10th September to S$1.295 yesterday.

As of 11th September, SGX, operator of the stock exchanges in Singapore, issued a query with regards to the sharp movement of their share prices. Ezra issued a statement replying that they are unaware of any possible explanation for the trading except for the announcement on 26 August 2013 which states: “the Company regularly explores and reviews business opportunities, projects and proposals relating to the subsea business and enters into discussions with various parties from time to time”.

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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 James Yeo doesn’t own shares in any companies mentioned.