Shares of Singapore's Olam surge after fund-raising plan
Shares of Olam International surged as much as 9 percent after the commodities trader announced its fund-raising plan, which is backed by investor, Temasek Holdings.
Olam is issuing a nominal US$750 million of 6.75 percent five-year bonds at a price of 95 percent.
The bonds have warrants attached that will allow holders to buy a total 387 million shares at about 1-29 a-piece.
The deal is to be offered pro rata to Olam shareholders and Temasek, which has a 16 percent stake.
Temasek said it will buy the rights not taken up by other investors.
Maybank Kim Eng has downgraded Olam International to sell, from hold.
The research house has also cut its target price to 1-42.
Olam shares jumped 10 and a half cents to 1-68.