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PR Newswire
06-09-2011, 06:35 PM
Business Times - 06 Sep 2011
Sheng Siong's share price slips a bit more
Counter falls a further 1.5cents to close at 47.5cents, but still above IPO price of 33 cents
By NISHA RAMCHANDANI
SHARES in supermarket operator Sheng Siong continued to decline yesterday, giving up a further 1.5 cents to close at 47.5 cents yesterday.
Yesterday's closing price was around 15.2 per cent lower compared to Aug 31, when it closed at a high of 56 cents.
However, shares in the supermarket operator - which was the most heavily traded by volume yesterday with 89.94 million shares changing hands - are still above its IPO price of 33 cents.
In the two weeks after its trading debut on Aug 17, the stock made fairly strong gains, even amid the market volatility which dogged most of August, as it is viewed as a defensive stock. The group has also said that it plans to pay out up to 90 per cent of its FY2011 and FY2012 post-tax profits as dividends.
According to its prospectus, as at 2010 the group held a 2.6 per cent market share of the retail market in revenue terms. This puts it in third place after NTUC FairPrice Co-operative, which has a 7.6 per cent share, and Dairy Farm International, with 7.4 per cent.
Between 2011 and 2012, Singapore's supermarkets and hypermarkets are expected to grow their revenue by 4-5 per cent, though this is expected to slow to 1.5-2.5 per cent in 2014 and 2015.
Sheng Siong, which has 23 stores across Singapore, also has plans to expand.
Last week, the group announced that its wholly owned subsidiary Sheng Siong Supermarket has entered into a lease agreement with JYC-NCL to rent premises at Woodlands Industrial Park for use as a supermarket. This is to be funded by internal resources.
According to the agreement, the group may rent the premises - which spans some 14,240 square feet - for three years starting Oct 1, with two consecutive options to renew for additional periods of three years each.
The group raised $116 million through its IPO, of which $62.6 million in net proceeds was set aside to fund the expansion of its grocery retail business in Singapore and overseas, working capital and repay term loans.
Sheng Siong's share price slips a bit more
Counter falls a further 1.5cents to close at 47.5cents, but still above IPO price of 33 cents
By NISHA RAMCHANDANI
SHARES in supermarket operator Sheng Siong continued to decline yesterday, giving up a further 1.5 cents to close at 47.5 cents yesterday.
Yesterday's closing price was around 15.2 per cent lower compared to Aug 31, when it closed at a high of 56 cents.
However, shares in the supermarket operator - which was the most heavily traded by volume yesterday with 89.94 million shares changing hands - are still above its IPO price of 33 cents.
In the two weeks after its trading debut on Aug 17, the stock made fairly strong gains, even amid the market volatility which dogged most of August, as it is viewed as a defensive stock. The group has also said that it plans to pay out up to 90 per cent of its FY2011 and FY2012 post-tax profits as dividends.
According to its prospectus, as at 2010 the group held a 2.6 per cent market share of the retail market in revenue terms. This puts it in third place after NTUC FairPrice Co-operative, which has a 7.6 per cent share, and Dairy Farm International, with 7.4 per cent.
Between 2011 and 2012, Singapore's supermarkets and hypermarkets are expected to grow their revenue by 4-5 per cent, though this is expected to slow to 1.5-2.5 per cent in 2014 and 2015.
Sheng Siong, which has 23 stores across Singapore, also has plans to expand.
Last week, the group announced that its wholly owned subsidiary Sheng Siong Supermarket has entered into a lease agreement with JYC-NCL to rent premises at Woodlands Industrial Park for use as a supermarket. This is to be funded by internal resources.
According to the agreement, the group may rent the premises - which spans some 14,240 square feet - for three years starting Oct 1, with two consecutive options to renew for additional periods of three years each.
The group raised $116 million through its IPO, of which $62.6 million in net proceeds was set aside to fund the expansion of its grocery retail business in Singapore and overseas, working capital and repay term loans.
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