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<Research>Citi: CIMC ENRIC (03899.HK) Raises Funds by Placing Shr to Support Clean Energy Biz; Rating Reiterated at Buy
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CIMC ENRIC (03899.HK) announced a placement of up to 79.7 million new shares, representing approx. 3.77% of its enlarged share capital, at a price per share of $9.79, representing about a 7.73% discount to yesterday's (19th) closing price of $10.61, with net proceeds of around $774 million. Citi Research published a research report keeping rating at Buy on CIMC ENRIC, with a target price of $12.5. The management of CIMC ENRIC explained that, although the cash position and cash flow appear ample on a consolidated basis, some funds are restricted in use, especially after the spin-off and listing of the chemical business (CIMC TECH (301559.SZ)). In addition, some operating cash inflows for the clean energy business come from advance payments by vessel customers, which cannot be used for capital expenditures. Therefore, CIMC ENRIC needs to rely on external financing to support capital expenditures for the clean energy business. AAStocks Financial News Website: www.aastocks.com |
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