Will Wilmar share price recapture its former glory and hit $7? The last time that Wilmar share price was trading at such bandwidth was more than a decade ago. That was the land before time.
Mid October of 2020 seems to be an auspicious period for mega deals. You have the Ant Group IPO and the merger of Capitamall Trust and CapitaLand Commercial Trust. And then there is Wilmar’s mega listing of Yihai Kerry Arawana Holdings Co., Ltd (YKA) on the Shenzhen Stock Exchange ChiNext Board. Question now is: will Wilmar share price hit $7 in the coming days?
In January 2020, I wrote that Wilmar share price had bottomed out and was poised for a major surge because of the catalyst of the China unit IPO. However, COVID-19 pandemic came along and walloped Wilmar share price to rock bottom price of $2.90.
Since March 2020, Wilmar share price steadily climbed to almost hit $5.00 in August when another toxic development knocked the wind out of Wilmar share price. On 20 August, major shareholder, Archer Daniels Midland, had sold 170.5 million Wilmar at $4.40. In addition to that, ADM had entered into a stock-borrow arrangement in respect of its Wilmar shares in connection with its offering of US$300,000,000 zero coupon exchangeable bonds.
The shares sale by ADM had shaken some confidence in Wilmar share price but not for long as the Yihai’s China IPO proved too much to resist. Apparently, Singapore’s sovereign wealth fund, GIC, had decided to join in the fun as well. With allotment amount of RMB472 million, GIC is the second largest strategic investor of YKA.
The IPO will raise USD2.06 billion, representing a windfall for Wilmar. No wonder the Chairman and CEO, Kuok Khoon Hong, purchased 2.1 million shares on 30 September. This insider purchase is a definite vote of confidence for Wilmar share price. In this article, I will share my insights on the outlook for Wilmar share price.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in Wilmar before. Whether Wilmar share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
Wilmar share price worth a punt?
With so many big boys backing the YKA IPO as strategic investors, Wilmar share price is likely to [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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