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3 Companies That Have Given Shareholders Reasons to Smile

Last week, investors were finally given reason to cheer as China and the United States made peace-making gestures. Besides this, there was also some good news for investors of some Singapore-listed companies.

Here are three companies that gave investors reason to smile.

AEM Holdings Ltd (SGX: AWX)

The semiconductor test handler provider announced that it has received S$280 million orders for delivery in 2019 and upped its guidance for full-year revenue to between S$285 million and S$305 million.

This is an increase from its earlier announcement of S$255 million sales orders for delivery in 2019 and its previous guidance of between S$265 million and S$280 million.

On the low end of its guidance and taking into account its first-half-year results, that translates to revenue of S$129.4 million for the latter half of the year, around 4% higher than the corresponding period last year.

Keppel DC REIT (SGX: AJBU)

The data centre real estate investment trust (REIT) announced that it would be purchasing two data centres, which are expected to be completed by the fourth quarter of the year. To fund the acquisition, the REIT will raise S$473.8 million through a private placement and a preferential offering.

The REIT followed up with another announcement just a day after saying that the private placement received huge interest and was 9.3 times subscribed, despite being priced at the top end of the price range of between S$1.703 and S$1.744 per unit, a 2.5% discount to the volume-weighted average price of the preceding market day on September 13.

Investors clearly loved the announcement, as its shares jumped 6.67%on 17 September. The assets are expected to be highly-accretive and the equity fundraising will even lower its gearing to 30.3% from 31.9%.

The REIT’s access to cheap equity capital puts in a great position for growth. The units issued were at a staggering 60% above its book value before the effects of the equity fundraising.

Mapletree Industrial Trust (SGX: ME8U)

The trust has proposed to acquire a portfolio of 13 data centres in America worth US$1.37 billion through a joint venture with Mapletree Investments  Pte Ltd. Mapletree Industrial Trust will have to fork out US$683.9 million (S$950.2 million) for its share in the investment.

The acquisitions and fundraising are expected to be both distribution per unit (DPU) and net asset value (NAV) per unit-accretive. The REIT is looking to raise S$350 million through a private placement to fund the 36.1% equity portion of its cost. The other 63.9% will be funded by debt. The use of significant debt will increase the REIT’s gearing to 38.5%.

However, if the private placement is successful, it would certainly be beneficial to existing unitholders. At the low end of the issue price range of between S$2.211 and S$2.265 per new unit, the new units are priced at a huge 45% premium to book value, which will immediately help to raise its book value per unit.

The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore has recommended shares of AEM Holdings Ltd and Mapletree Industrial Trust. Motley Fool Singapore contributor Jeremy Chia does owns shares in AEM Holdings Ltd.