Dyna-Mac - OCBC Investment 2024-01-25: Stay The Course

• Dyna-Mac (SGX:NO4) has approved and listed 207.4m bonus warrants as at 23 Jan 2024. Each bonus warrant will entitle the warrant holder to subscribe for one new ordinary share of the company at an exercise price of S$0.15, which represents a deep 46.4% discount to Dyna-Mac's share price of S$0.28 as at 15 Dec 2023.

To reward existing shareholders & encourage trading liquidity.

• - Read this at SGinvestors.io -
• According to Dyna-Mac, the issuance is intended to reward existing shareholders and to encourage trading liquidity.
• - Read this at SGinvestors.io -
• In our view, existing investors can consider exercising their warrants to avoid dilution and to participate in the company’s future growth.

Deployment of dry powder into a strategic acquisition

• Separately, Dyna-Mac also announced its acquisition of Exterran Offshore Pte Ltd (Exterran) for a cash consideration of US$8.25m.
• Exterran’s latest available unaudited net tangible asset value and net book value as at 31 Dec 2023 was US$3.65m, including US$2.51m in cash, whilst an independent valuer had valued the land and building owned by Exterran at S$17m as at Aug 2023.
• The acquisition will allow Dyna-Mac to access Exterran’s yard facilities of approximately 4.5 hectares along Gul Road, thereby extending the company’s projected total waterfront length to more than 680 metres.

Positive for both top & bottom line growth

• Read more at SGinvestors.io.

Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-01-25 SGinvestors.io

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