Singapore Paincare up 12.1% as Sias urges shareholders to await IFA report
[SINGAPORE] Shares of Singapore Paincare rose on Thursday (Jun 5), a day after the Securities Investors Association (Singapore), or Sias, said the medical services company could be worth more than double its privatisation offer price.
As at 4.19 pm, the counter was trading at S$0.176, 12.1 per cent or S$0.019 above the previous closing price of S$0.157 on Wednesday, with 15.2 million shares transacted. This was its highest price in the year to date.
It closed on Thursday 8.3 per cent or S$0.013 higher at S$0.17, with 17.3 million shares having changed hands.
On Wednesday, Sias urged minority shareholders of Singapore Paincare to hold off selling their shares amid an acquisition bid from Advance Bridge Healthcare, a management consultancy for healthcare services.
Sias noted that the company could be worth around S$0.36 to S$0.37 a share, more than double the S$0.16 a share privatisation offer price.
It recommended that shareholders wait and refrain from taking action until the report by the independent financial adviser (IFA) is released.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
'If the shares are sold on the open market, shareholders who sold will not have recourse if there is subsequent upward revision in the offer price,' Sias warned.
There have been past instances when shareholders sought slight gains and sold their shares on the open market before the IFA issued its report, it noted.
Moreover, the S$0.37 per share offer price is at a 'slight discount' to the company's audited net asset value (NAV) per share of S$0.166 as at Jun 30, 2024, it said.
The association highlighted that Singapore Paincare made its July 2020 trading debut during Covid-19 with an initial public offering (IPO) price of S$0.22 per share, when valuations were depressed and when the Straits Times Index (STI) was trading at around 2,500 points.
The IPO price of S$0.22 was a 123 per cent premium to the group's unaudited NAV per share of about S$0.0986 on Dec 31, 2019, based on the post-placement share capital and after adjusting for net proceeds due to the company from the placement.
'It now wishes to delist at S$0.16 per share when the STI is trading at around 3,900 points... If the same IPO premium were to be applied now, the privatisation price should be around S$0.36 to S$0.37,' Sias said.
'For a delisting to take place, the IFA has to conclude that the offer is both fair and reasonable... it would therefore be advisable to wait for the IFA's opinion.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
5 hours ago
- Straits Times
Singapore stocks rise after Trump-Xi talks; STI up 0.4%
SINGAPORE - The local bourse ended in a positive territory on Jun 6 after a call between US President Donald Trump and Chinese President Xi Jinping boosted investors' confidence. The benchmark Straits Times Index (STI) rose 0.4 per cent or 16.6 points to end at 3,934.29. Across the broader market, gainers beat losers 266 to 205 as 849.5 million securities worth $1.1 billion changed hands. Mr Xi and Mr Trump agreed to further dialogue on trade after their call on June 5. Mr Trump said that disputes over rare-earth exports were resolved, and he had accepted China's invitation to visit. Beijing said it had complied with the terms of last month's trade truce. Mr Trump also reversed his stance on Chinese students, welcoming them to study in the US. Maybank's research team noted in a report on June 6: 'While this may be a positive development for risk, we are also wary that Trump may simply shift his attention to another country instead of China.' The team expects Mr Trump's trade and tax policy to continue swinging the markets, and highlighted that Mr Trump and Mr Musk's feud on social media offset some equity gains from positive US-China trade developments. 'We hold on to selling US dollar on rally alongside fading US exceptionalism, and a weaker NFP (non-farm payrolls) print would reinforce the narrative that US exceptionalism is indeed fading,' wrote the team. On the STI, Sembcorp Industries led the gains, up 3 per cent or $0.20 at $6.85. SIA was at the bottom of the list, down 1.3 per cent or $0.09 at $7.09 on a cum-dividend basis. The trio of local banks ended the day mixed. OCBC was up 0.3 per cent or $0.05 at $16.28. DBS rose 0.2 per cent or $0.10 to $45.12. UOB was down 0.1 per cent or $0.04 at $35.25 on a cum-dividend basis. Regional markets closed mixed on June 6. Japan's Nikkei 225 rose 0.5 per cent, while the Bursa Malaysia Kuala Lumpur Composite Index dropped 0.1 per cent. Hong Kong's Hang Seng Index was down 0.5 per cent. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
7 hours ago
- Business Times
Singapore stocks rise post Trump-Xi talks; STI up 0.4%
[SINGAPORE] The local bourse ended Friday (Jun 6) in a positive territory after a call between US President Donald Trump and Chinese President Xi Jinping boosted investors' confidence. The benchmark Straits Times Index (STI) rose 0.4 per cent or 16.60 points to end at 3,934.29. Across the broader market, gainers beat losers 266 to 205 as 849.5 million securities worth S$1.1 billion changed hands. Xi and Trump agreed to further dialogue on trade after their call on Thursday evening. Trump said that disputes over rare-earth exports were resolved, and he had accepted China's invitation to visit. Beijing said it had complied with the terms of last month's trade truce. Trump also reversed his stance on Chinese students, welcoming them to study in the US. Maybank's research team noted in a report on Friday: 'While this may be a positive development for risk, we are also wary that Trump may simply shift his attention to another country instead of China.' The team expects Trump's trade and tax policy to continue swinging the markets, and highlighted that Trump and Musk's feud on social media offset some equity gains from positive US-China trade developments. 'We hold on to selling US dollar on rally alongside fading US exceptionalism, and a weaker NFP (non-farm payrolls) print would reinforce the narrative that US exceptionalism is indeed fading,' wrote the team. On the STI, Sembcorp Industries led the gains, up 3 per cent or S$0.20 at S$6.85. SIA was at the bottom of the list, down 1.3 per cent or S$0.09 at S$7.09 on a cum-dividend basis. The trio of local banks ended the day mixed. OCBC was up 0.3 per cent or S$0.05 at S$16.28. DBS rose 0.2 per cent or S$0.10 at S$45.12. UOB was down 0.1 per cent or S$0.04 at S$35.25 on a cum-dividend basis. Regional markets closed mixed on Friday. Japan's Nikkei 225 rose 0.5 per cent, while the Bursa Malaysia Kuala Lumpur Composite Index dropped 0.1 per cent. Hong Kong's Hang Seng Index was down 0.5 per cent.
Straits Times
11 hours ago
- Straits Times
Former senior minister Teo Chee Hean to be next Temasek chairman, taking over from Lim Boon Heng
Mr Teo Chee Hean will first join Temasek's board as deputy chairman on July 1. PHOTO: ST FILE Former senior minister Teo Chee Hean to be next Temasek chairman, taking over from Lim Boon Heng SINGAPORE - Former senior minister Teo Chee Hean will be the new chairman for state investor Temasek Holdings, succeeding Mr Lim Boon Heng who will be stepping down on Oct 9, 2025. Mr Teo will first join Temasek's board as deputy chairman on July 1, before taking the helm in October. Mr Lim has served as the chairman for 12 years, notably guiding Temasek's global expansion and supporting the fight against the Covid-19 pandemic, among other efforts such as in corporate governance and sustainability. In a separate statement, Prime Minister Lawrence Wong said: 'I thank Mr Lim for his dedicated service at Temasek - under his stewardship, Temasek has expanded its global presence, strengthened its governance processes, and established itself as a leader in sustainable development. 'I also welcome Mr Teo as the incoming chairman. With his extensive experience in public service and deep understanding of Singapore's strategic priorities, I am confident he will build on Temasek's strong foundations, and steer its continued success in an increasingly complex global environment,' added Mr Wong, who is also Finance Minister. Temasek executive director and chief executive Dilhan Pillay Sandrasegara said on June 6 that Mr Teo has had a 'remarkable' public service career across multiple domains. 'I'm pleased to welcome Mr Teo Chee Hean as our fifth chairman... We are privileged that Temasek can benefit from his perspectives and extensive experiences, and we look forward to his stewardship as we navigate the opportunities and challenges ahead,' he said. Mr Teo, a key figure in Singapore's third-generation leadership, served as deputy prime minister from 2009 to 2019 and as Coordinating Minister for National Security from 2011. He was appointed Senior Minister in 2019. He began his career in the navy in 1972 and rose to become chief of navy before leaving the armed forces in 1992 to enter politics. His first Cabinet role was as minister of state for finance and communications. He later held ministerial portfolios in home affairs, defence, education and environment. Temasek also announced on June 6 that Mr Cheng Wai Keung, Mr Stephen Lee and Mr Bobby Chin will be retiring from the board in the coming months. Mr Cheng, who is deputy chairman, and Mr Lee, a director, will step down on June 30 after nearly 14 years and eight years of service respectively. Mr Chin, also a director, will retire on July 31 after serving for 11 years. Temasek has a net portfolio value of $389 billion as of March 21, 2024. It is a significant contributor to Net Investment Returns Contribution (NIRC), alongside sovereign wealth fund GIC and central bank Monetary Authority of Singapore, which is used for Government spending. Mr Teo noted that in an 'era of deepening global uncertainty', Temasek must remain clear minded on critical matters such as international relations, security and climate change. 'As a key Singapore institution with a global investment footprint, Temasek understands that its long-term success requires both addressing today's risks and opportunities and anticipating tomorrow's trends,' he said. 'I look forward to working with Temasek's Board, management team and members of the wider Temasek family to build on the achievements of Temasek and chart a path for its continued success in the new global environment.' Join ST's WhatsApp Channel and get the latest news and must-reads.
