The group has recently announced a placement of $42 million via 17 million treasury shares, priced at $2.52 per share, representing a discount of 5.38% to Sept 23’s volume-weighted average price (VWAP).
RHB Bank Singapore is reiterating its “buy” recommendation on Food Empire with a higher target price of $2.95 from $2.72 previously.
In a Sept 25 report, analyst Alfie Yeo says: “We continue to like Food Empire for its longer-term growth prospects, driven by capacity expansion. We believe its latest round of fund raising will enable it to have more cash resources to drive growth via capacity expansion, brand investment initiatives, and possible acquisitions.”
