Stocks to watch: Keppel Reit, Nam Cheong, Tritech Group, Ntegrator International

The Singapore Exchange Centre in Shenton Way.
The Singapore Exchange Centre in Shenton Way.PHOTO: ST FILE

SINGAPORE - The following companies saw new developments that may affect trading of their shares on Wednesday (APRIL 3):

Keppel Reit: Keppel Reit (real estate investment trust) has priced its $200 million five-year convertible bonds at 1.9 per cent, or the top-end of the expected interest rate range of 1.7 to 1.9 per cent. The initial conversion price of $1.4625 per unit represents a 12.5 per cent premium to the counter's closing price of $1.30 on Tuesday. The bonds will be issued in denominations of S$250,000. The upsize option for another $50 million worth of bonds was not triggered, though the Reit manager noted that the issue was "well subscribed", with the bonds placed with institutional and other investors. Based on an issue size of $200 million, net proceeds is expected to be about $197.45 million. These will be used to refinance existing debt or fund any potential acquisitions, said the Reit manager, which is in the process of conducting due diligence for a potential acquisition. The number of new units to be issued if the bonds are fully converted is about 136.75 million units, or 4 per cent of the existing units in issue as at April 2.

Nam Cheong: The independent auditors of offshore vessel builder Nam Cheong said they have not obtained sufficient evidence that the group's financial statements for the financial year ended Dec 31, 2018 should have been prepared on a going concern basis. They are therefore unable to issue an audit opinion. The auditors, Foo Kon Tan LLP, said Nam Cheong's statements were prepared on a going concern basis, premised on a key assumption that there are no claims from creditors, primarily the Non-Fujian Group Shipyards. Nam Cheong has yet to terminate the contracts with the shipyards or restructure the debts owing to the shipyards, which are reasonably likely to have a material effect on its financial condition and operations, said the auditors. The counter closed flat at 0.8 cent apiece on Tuesday.

Tritech Group: Tritech Group's wholly owned subsidiary Tritech Environmental Group has signed a partnership agreement for a project worth 727 million yuan (S$146.7 million). The project involves the construction, upgrading and expansion of a sewage treatment plant and associated sewage pipe networks. It was awarded by an authority in Laifeng county, Hubei province in China. The project will be undertaken by a joint company to be incorporated by Tritech Environment with a 51 per cent stake, and government-owned entity Laifeng Country Urban Development and Investment with a 49 per cent stake. The paid-up capital will be about 189 million yuan. The project's estimated investment amount includes the construction investment of about 631 million yuan and sewer infrastructure assets of about 96 million yuan, to be transferred to the project company. The construction period is three years, with a construction-operation-transfer period of 30 years, including the three-year construction period. Shares in Tritech Group closed at 5.3 cents apiece on Tuesday, up 26 per cent, or 1.1 cents.

Ntegrator International: The regional communications network specialist and systems integrator, has secured a contract totalling about $58.6 million from a Singapore-based regional service provider that is a repeat customer. The contract involves the installation of pipelines and manholes, the installation, maintenance and diversion services for infrastructure cables, and the service provision and maintenance of business services across the eastern, western and central parts of Singapore. The project commenced on April 1, 2019 and covers a two-year period, with an option to extend for a further period of one year. The contract is expected to contribute positively to the group's financial performance and condition over the next two years, subject to the timely completion of the project and effective cost management, said Ntegrator. The counter last traded at 0.6 cent apiece on Tuesday.