Frencken shares drop 8.3% after S$100 million placement
The company plans a proposed placement of 44.1 million shares
Frencken's shares plummeted by 8.3% on Friday (Aug 28) following the announcement of a proposed S$100 million placement, as the stock opened at S$2.33, down S$0.21 from its Tuesday closing price. Share trading was halted on Wednesday and Thursday. The company plans to raise S$100 million through a private offering of 44.1 million shares at S$2.2687 each, which is a 10% discount to the current market price.
The new shares will constitute 10.3% of existing issued shares and 9.3% of the total shares post-placement. Frencken's stock has surged 78.9% year-to-date due to the artificial intelligence boom, with major customers such as Applied Materials and ASML. However, other Singapore-listed semiconductor firms have outperformed Frencken, with AEM up over four times and UMS Integration up about 130%.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
