Sembcorp Marine share price collapsed
LIFETIME MEMBERSHIP What a mayhem for Sembcorp Marine share price! On 24 June, both Sembcorp Marine and Keppel Corp requested trading halts for their counters. The trading halts were in preparation for the release of the epic announcements in relation to the bombshell $1.5 billion rights issue and commencement of merger talks between Sembcorp Marine and Keppel Offshore & Marine (KOM).
For Sembcorp Marine share price, it is a case of lightning strikes twice. The previous rights issue of $2.1 billion took place just in September 2020. And now, within a span of less than a year, Sembcorp Marine has come back to ask for more money from shareholders. To rub salt into injury, the latest cash call amounted to a staggering $1.5 billion, representing 63% of the current market capitalization. Against this backdrop, Sembcorp Marine share price plunged by as much as 28% after trading halt was lifted.
For sure, the twin announcements raised more questions than answers for investors. A few SG Wealth Builders had written in to request for my insights. Understandably, confidence was shaken for Sembcorp Marine share price. The management shot itself in the foot by announcing the massive rights issue together with the merger talks with KOM.Read more