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Singapore Market’s Big Movers Of The Day

StockMarketBoardThe Straits Times Index (SGX: ^STI) extended yesterday’s losses by declining 0.3% to 3,145 points.  There were 17 losers and eight winners. That said, the movements for the 30 constituents within the benchmark STI were modest.  Most of the action took place outside the index.

RH PetroGas Limited (SGX: T13) jumped 28% to S$0.90. The company, which is engaged in the exploration, development, and production of oil & gas resources, had announced yesterday night that it will be issuing up to 116m new ordinary shares at S$0.63 apiece in a private placement.

The new shares are meant for institutional and accredited investors and would net the company around S$70.2m after deduction of relevant expenses. Existing shareholders are looking at a dilution of around 19% of their stake in RH PetroGas, but that has not stopped the market from feeling excited about the private placement.

The company intends to use the bulk of the proceeds (up to 90%) to “fund the operating expenditure and capital expenditure in relation to exploration, development or production activities of Salawati Basin and Salawati Island”.

Chinese restaurant operator Soup Restaurant Group Limited (SGX: 5KI) saw its shares gain 11.4% to S$0.25. There was nothing new going on at the company, except for a slew of share buy-backs occurring since August. That has seen the company acquire a total of 4.7m of its own shares as of 27 Sep 2013. That’s around 1.6% of its outstanding shares.

The company’s latest half-year results weren’t its best as profits dipped 81% to S$150,000 compared to a year ago. Despite that, management must still see great value in the company’s shares to be actively engaging in share buy-backs.

Asia-Pacific Strategic Investments (SGX: 5RA) completes today’s “big movers” following its 6.7% drop to S$0.35. On Monday, the bereavement services provider announced that its share count had increased from 122.75m to 124.9m after 2.15m warrants with a strike price of S$0.05 each were exercised.

The company also mentioned that there are still 13.78m outstanding warrants with a strike price of S$0.05 that will expire on 16 July 2018. Should these warrants be exercised, existing shareholders are looking at a potential dilution of around 11% based on the current share count of 124.9m.

It should be noted that at a strike price of S$0.05, the warrants can book an immediate profit of S$0.27 per share for its holders if it’s exercised at Asia-Pac’s current share price. While I certainly would not know the intentions of the holders of those warrants, there’s a decent chance that the warrants will get exercised prior to expiration, provided Asia-Pac’s share price does not fall below the strike price.

Shareholders and potential-investors of the company should be aware of a potential dilution in their ownership stakes.

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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.