Posted by steady > 2014-07-07 09:58 | Report Abuse

bought back at 3.04 :)
0.06 gap

Posted by voonyoke > 2014-07-07 09:59 | Report Abuse

For me, the only reason for those people is because they don't have money to subscribe rights issue. So they have to sell some in order to subscribe the rights issue. This proposal of rights issue is a good news because the money it raises is to expand the existing business.

Posted by HTP123SYNERGY > 2014-07-07 09:59 | Report Abuse

Inari got strong support,don't worry.Those who sell should realise there's strong support & price will rebound sooner than you think.

Posted by voonyoke > 2014-07-07 10:07 | Report Abuse

buy now or you will regret soon.

Posted by buckbunny > 2014-07-07 10:08 | Report Abuse

i believe it can fly..

Posted by Lee Chun Beng > 2014-07-07 10:08 | Report Abuse

Volume spike up...something going to happen :)

Posted by rosetan > 2014-07-07 10:10 | Report Abuse

My conversion from wa to shares took only 6 working days.

Posted by Alex Leow Sze Shen > 2014-07-07 10:10 | Report Abuse

3.10, coming back strongly!

Posted by voonyoke > 2014-07-07 10:10 | Report Abuse

Those who sell it just purely because they don't have money to subscribe the rights issue.

Posted by voonyoke > 2014-07-07 10:11 | Report Abuse

I am strongly believe it will fly cross 3.20 by today.

Posted by Alex Leow Sze Shen > 2014-07-07 10:11 | Report Abuse

must also thanks to market sentiment, index up a lot today

Posted by buckbunny > 2014-07-07 10:14 | Report Abuse

must thanks to all Inari hardcore supporters.

Posted by tomjohor > 2014-07-07 10:15 | Report Abuse

Inari Amertron Bhd - Candylicious - Right Issue with Warrants

Author: kltrader | Publish date: Mon, 7 Jul 10:03




Highlights

Proposed renounceable right issue of up to 88.8m new shares together with up to 88.8m free detachable warrants

Every 8 ordinary Inari shares are entitled with 1 right share at an indicative price of RM1.50 sweetened with 1 warrant for every 1 rights share subscribed.

The 5-year American-style warrant’s indicative exercise price is RM2.00 on the basis of 1 for 1 new Inari share.

Majority of the Right issue proceeds will be allocated for CAPEX to expand production capacity (plant extension, acquisition of land, factories, equipment and machineries) with a budget of RM60-80m, followed by repayment of bank borrowings amounted to RM20m and the remaining of RM18-31m as working capital.

However, the exact details/breakdown of the utilization of Warrant proceeds have not been determined but shall also be in the nature of CAPEX, investment opportunities and/or working capital.

Justifications of this corporate exercise include interest / financing costs savings, strengthening financial position and improve equity participation.

This proposal is expected to be completed in 4QCY14.

Comments

Apart from the fund raising methodology, we are not surprise that Inari is embarking on an aggressive expansion plan as this was highlighted in previous report titled “Expect ISK Maiden Contribution by 4QFY14” dated 19 May 2014.

RF’s new plant 5 is already running at near full capacity or utilization rate of 85% although it was recently expended. Inari was already evaluating several alternatives for the next phase of expansion, including using plant 5’s rooftop, acquiring new land beyond Penang Island in BAtu Kwan or procuring a ready factory.

This sends a strong signal that Inari’s RF business continues to enjoy exponential growth underpinned by insatiable global mobile data demand.

Forecasts

Imputed a more aggressive capacity expansion plan for RF segment in FY15. As a result, FY15-16 core net profits were raised by 8.7% and 7.6%, respectively while FY14 was unchanged.

Catalysts
• Wireless communications / mobility / IoT (M2M) / LTE.
• Business diversifications into optoelectronics and T&M.
• Favorable FOREX.
• Continuous effective operational strategy.

Risks
• Single major client risk (Avago) / high dependency.
• FOREX risks.
• Patent disputes.
• Resources / labour shortage.

Rating

BUY, TP: RM3.41

Positives - Synergy from acquisition, 40% dividend payout providing reasonable yield.

Negatives – innovation stalemate in telecommunication.

Valuation

Reiterate BUY after raising TP by 10.4% from RM3.09 to RM3.41 chiefly to reflect the upward earnings revision. Fair value is pegged to unchanged 15.1x CY15 P/E.

Source: Hong Leong Investment Bank Research - 7 Jul 2014

Posted by lloydlim > 2014-07-07 10:16 | Report Abuse

Tomorrow T+3

Posted by voonyoke > 2014-07-07 10:16 | Report Abuse

KUALA LUMPUR: Affin Research has maintained its Buy on Inari Amertron with a target price of RM4.26 based on an unchanged PE target of 18x CY15 EPS.

In a note on Monday, it said Inari Amertron had proposed to undertake a renounceable rights issue of up to 88.8m new ordinary shares together with up to 88.8m free detachable warrants on the basis of one rights share for every eight shares and one free warrant for every one rights share subscribed.

Inari intends to utilise RM60mil of the proceeds to fund its expansion plans.

The remaining of the proceeds will be used for repayment of bank loans and working capital. Barring any unforeseen circumstances, the proposed rights issue is expected to be completed in 4Q14.

“We are generally positive on the proposed rights issue as it enables the group to raise additional funds without incurring high borrowing cost, enhance the liquidity of Inari shares,” it said.

It will also provide an opportunity for existing shareholder to increase their equity interest in Inari; and the free warrants will provide Inari additional capital when warrants are exercised in the future thus eluding further financing cost in the future.

Posted by Alex Leow Sze Shen > 2014-07-07 10:19 | Report Abuse

Those who bought this morning, YOU ARE TRULY A CHAMPIONS! SURELY VERY SURELY U UNTUNG KAW KAW OREDI!

Posted by HTP123SYNERGY > 2014-07-07 10:20 | Report Abuse

If you have confidence in Inari,you will not be carried by some unreasonable selling.Hold tightly & you'll get yr rewards sooner than you expect.

Posted by yongleecheng > 2014-07-07 10:40 | Report Abuse

Affin Research maintains Buy on Inari
---thestar.com.my

KUALA LUMPUR: Affin Research has maintained its Buy on Inari Amertron with a target price of RM4.26 based on an unchanged PE target of 18x CY15 EPS.

Posted by yongleecheng > 2014-07-07 10:41 | Report Abuse

TP RM4.26.

HING AH,HUAT AH.

Posted by Trisven > 2014-07-07 10:42 | Report Abuse

good show today..........bottom n up back..cheers..=)

Posted by yongleecheng > 2014-07-07 10:48 | Report Abuse

Affin Research maintains Buy on Inari

http://www.thestar.com.my/Business/Investing/2014/07/07/Affin-Research--maitnains-Buy-onINari/

Posted by lynnNg > 2014-07-07 10:50 | Report Abuse

didn't buy any more, reserve the fund for the right issues n warrants exercise, feeling happy abt the distribution!

Posted by chongway > 2014-07-07 10:51 | Report Abuse

THANKS VOONYOKE ! WOWW !

Posted by gogo2014 > 2014-07-07 10:55 | Report Abuse

For those who hold warrant, what will have to the current warrant. Do warrant also get 8 to 1?

Posted by gogo2014 > 2014-07-07 10:55 | Report Abuse

what will happen to the current warrant

Posted by gogo2014 > 2014-07-07 10:56 | Report Abuse

please advise

Posted by BUCKBUNNY > 2014-07-07 10:58 | Report Abuse

11am later good show time.

Posted by lee9fold > 2014-07-07 11:02 | Report Abuse

wa doesnt get 8 to 1 of coz...i believe the conversion price might be adjusted as well as the price...but dont worry as u will be entitled extra shares of wa due to the dilution in price...which means price reduce but yr no. of shares increase...so its the same...detail pls refer to the pdf file of the announcement

some 1 pls correct if i am wrong :D

Posted by gogo2014 > 2014-07-07 11:03 | Report Abuse

thanks lee9fold

Posted by rosetan > 2014-07-07 11:41 | Report Abuse

lee9fold, correct me if I am wrong ... i think wa holders will not get extra wa but exercise price may be reduced, no increase in no. of wa.

Posted by rosetan > 2014-07-07 11:43 | Report Abuse

The new wa will not be the same as the old wa.

Posted by lee9fold > 2014-07-07 11:46 | Report Abuse

rose...pls refer to the pdf file...under 2.3(III) section

Posted by lee9fold > 2014-07-07 11:47 | Report Abuse

price of of coz will change...but the no. of shares will increase to compensate

Posted by rosetan > 2014-07-07 11:56 | Report Abuse

It is not clear yet from 2.3(III) how existing wa will be affected. Maybe some of you who have experience with rights issue and free wa with existing wa can share.

Posted by lee9fold > 2014-07-07 12:01 | Report Abuse

but clearly there is additional listings of wa

Posted by Alex Leow Sze Shen > 2014-07-07 12:03 | Report Abuse

either WA or WB

Posted by rosetan > 2014-07-07 12:04 | Report Abuse

Agreed, lee9fold.

Posted by Koay Yi Chuan > 2014-07-07 12:49 | Report Abuse

Better to convert the warrants. Warrants won't get rights issue and new warrants. When price is adjusted post-rights, warrant price will get whacked and diluted. Convert warrants before rights issue and subscribe for rights in order not to be diluted. Correct me if I'm wrong.

Posted by wangge > 2014-07-07 13:04 | Report Abuse

Affin TP 4.26 2015. Our experience in 2014 Affin TP is achieved about 7 months early than their released TP.

Posted by lee9fold > 2014-07-07 13:23 | Report Abuse

koay...i believe price of wa to be diluted but at the same time the no. of wa shares will be increased to compensate

Posted by Equityengineer > 2014-07-07 13:28 | Report Abuse

TP 4.26 .. This year will be prosperous ...

Posted by Koay Yi Chuan > 2014-07-07 13:31 | Report Abuse

How will the existing shareholders of warrants get the new warrants? They won't and so their shareholdings will be diluted.

Posted by johnny cash > 2014-07-07 13:49 |

Post removed.Why?

Posted by HTP123SYNERGY > 2014-07-07 15:11 | Report Abuse

Tussle @3.10..........strong support!Look like certain party is collecting@3.10.

Posted by rosetan > 2014-07-07 15:19 | Report Abuse

lee9fold, I agree with Koay. Warrant holders will be disadvantaged. It is not mentioned in 2.3(iii) that the no. of wa will be increased to compensate.

2.3(iii) says
additional Existing Warrants to be issued pursuant to the adjustment clauses of the deed poll governing the Existing Warrants dated 25 April 2013;

How will the additional wa be distributed?

Posted by voonyoke > 2014-07-07 15:19 | Report Abuse

It is good chance to accumulate more. Once it flies high, it won't turn back.

Posted by Alex Leow Sze Shen > 2014-07-07 15:34 | Report Abuse

coming up 4.00pm the rebounce hour!

Posted by slts > 2014-07-07 15:40 | Report Abuse

at mother 3.09
ex rights = 2.91
ex price of wa = 0.38 - 0.18 = 0.20
so mkt price of wa = 2.91 - 0.20 = 2.71
no additional wa to be issue, just ex price lowered

Posted by voonyoke > 2014-07-07 15:53 | Report Abuse

slts,have you bought some today? Good opportunity to accumulate.

Posted by Alex Leow Sze Shen > 2014-07-07 15:54 | Report Abuse

slts, where ur 2.40?