16 January 2013

Yangzijiang falls after announcing warrants issue plan

SINGAPORE, Jan 16 (Reuters) - Shares in Yangzijiang Shipbuilding (Holdings) Ltd fell 7.7 percent to a
one-week low on Wednesday on concerns over the potential dilution of its stock after it announced plans to issue S$20 million ($16.32 million) worth of warrants. 

By 0955 SG Hour, Yangzijiang shares were at S$1.015, with 48.9 million shares traded, 1.2 times its average daily volume over the last five sessions. 

Yangzijiang said it plans to sell 330 million warrants at S$0.0605 a piece, and each will carry the right to subscribe to one new share at 7.617 yuan ($1.23).  

"There is some uncertainty over why the company is raising funds. It's not a large amount they are getting and the exercise price of the warrant is also quite high considering their share price today," said a local trader. 

($1 = 1.2252 Singapore dollars)
($1 = 6.2136 Chinese yuan) 

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