Shares in Malaysian oil and gas services provider KNM Group Bhd
jumped as much as 7.5 percent after the firm announced
a planned Singapore listing of its German industrial equipment
The stock rose as high as 0.71 ringgit per share as
investors said the Singapore listing could help to improve
transparency and the proceeds be used to cut debts and fund
But Affin Investment bank said KNM's valuation of Borsig at
1.8-1.9 billion Malaysian ringgit was highly ambitious and might
be difficult to achieve.
The investment bank said it was keeping its 'sell' call on
KNM and maintaining a target price of 0.50 ringgit per share as
the firm's core business is highly competitive and its financial
position remains weak.
As at end-June 2012, KNM has 176.6 million ringgit in cash
versus 773.6 million ringgit of short-term debts and 263.5
million ringgit long term debts, company data showed.