[%aMdt%] 
Research by PIB
Neutral – TP of MYR 1.00

“Proposed Private Placement"

Fiamma Holdings Bhd (Fiamma) announced a private placement exercise of up to 53m shares or 10% of current issued shares. This is expected to raise gross proceeds of RM56m based on illustrative price of RM1.06/share. Most of the proceeds are earmarked for the expansion of its electrical home appliances trading business and office renovation to support the digitalisation of the existing workspace. We are slightly surprised though neutral on this move to raise fresh equity given its relatively healthy gearing ratio at 0.19x. We maintain our Neutral call with and sum-of-parts (SOP)-based TP of RM1.00 pending further clarification from management on more specific plans for these proceeds which should be earnings accretive.

Analyst(s):
Denny Oh
[%PNJH%]

$KLSE-FIAMMA 
Research by PIB
Neutral – TP of MYR 1.00

“Proposed Private Placement"

Fiamma Holdings Bhd (Fiamma) announced a private placement exercise of up to 53m shares or 10% of current issued shares. This is expected to raise gross proceeds of RM56m based on illustrative price of RM1.06/share. Most of the proceeds are earmarked for the expansion of its electrical home appliances trading business and office renovation to support the digitalisation of the existing workspace. We are slightly surprised though neutral on this move to raise fresh equity given its relatively healthy gearing ratio at 0.19x. We maintain our Neutral call with and sum-of-parts (SOP)-based TP of RM1.00 pending further clarification from management on more specific plans for these proceeds which should be earnings accretive.

Analyst(s):
Denny Oh
research@publicinvestbank.com.my