- CSE Global granted 62.97m warrants to Amazon (AMZN:US), which will allow them to acquire 1-1 share at S$0.767/share. The amount of warrants is conditional upon Amazon giving orders of up to US$1.5b to CSE over the next 5 years, of which they will own 8% of CSE.
- - Read this at SGinvestors.io -
Amazon may become a substantial shareholder of CSE.
- Upon full exercise of the warrants, Amazon will own 8% of CSE Global and become a substantial shareholder, with CSE receiving S$48.3m cash to fund US expansion.
- The warrants will be issued on an order-backed basis over 5 years, contingent on up to US$1.5b of orders awarded to CSE.
Annualized run rate of US$300m/year.
- - Read this at SGinvestors.io -
- However, we expect a gradual ramp-up in capacity, likely starting at US$200–250m per year and accelerating in 2027 post-expansion phases.
- Data centre contribution is projected to rise from 5% in FY25E to over 30% by FY27E.
Maintain BUY with a higher target price of S$1.20.
- Read more at SGinvestors.io.
