Hot stock: Yoma shares jump 20% on Ayala investment despite Q2 loss

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hotstock: Yoma shares jump 20% on Ayala investment despite Q2 loss

SHARES of Yoma Strategic soared on Thursday’s market open on news that Philippines conglomerate Ayala would be coming on board as its second largest shareholder after taking a maximum 20 per cent stake in the company for US$155 million.

This was despite the Myanmar-focused company sinking into the red for the second quarter, as separately announced on Thursday. At 9.04am, the counter jumped 20 per cent or 6.5 Singapore cents to S$0.39, from a flat Tuesday close of S$0.325. By 9.30am, it pared some gains to trade at S$0.365, up four cents or 12.3 per cent.

Yoma on Thursday said Ayala will pay an issue price of S$0.45 per share for its stake, which represents a 37.7 per cent and 36.5 per cent premium over the volume-weighted average price of the shares traded on Nov 12 and Nov 13 respectively.At least half or more of the placement proceeds will go into funding the growth and expansion of the group’s various businesses, with the remainder being used to refinance existing indebtedness and for general corporate purposes.

 

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