SINGAPORE Jan 16 Shares in Yangzijiang
Shipbuilding (Holdings) Ltd fell 7.7 percent to a
one-week low on Wednesday on concerns over the potential
dilution of its stock after it announced plans to issue S$20
million ($16.32 million) worth of warrants.
By 0155 GMT, Yangzijiang shares were at S$1.015, with 48.9
million shares traded, 1.2 times its average daily volume over
the last five sessions.
Yangzijiang said it plans to sell 330 million warrants at
S$0.0605 a piece, and each will carry the right to subscribe to
one new share at 7.617 yuan ($1.23).
"There is some uncertainty over why the company is raising
funds. It's not a large amount they are getting and the exercise
price of the warrant is also quite high considering their share
price today," said a local trader.
($1 = 1.2252 Singapore dollars)
($1 = 6.2136 Chinese yuan)
(Reporting by Charmian Kok; Editing by Paul Tait)