In a September 18 report by UOB Kay Hian, analyst Adrian Loh says, “We attribute this to the fact that the removal of SMM as its subsidiary has given the market greater confidence in SCI’s future business outlook as it will not have the millstone of having to provide financial support for SMM going forward.”
On September 9, Sembcorp Marine (SMM) demerged from Sembcorp Industries (SCI) and the latter’s share prices has since significantly outperformed, rising by 36% from its demerged price of 96 cents per share.
