AEM hits record price on new shares approval

AEM Holdings’ shares hit a new record high of S$4.60 earlier this week, as its buyout of CEI Limited moved closer to completion.

  • AEM Holdings (SGX: AWX) saw its share price soar over 7% earlier this week
  • Shares hit an all-time high of S$4.60 per share on Monday (15 February 2021)
  • The rally came after the group announced it has received an ‘in-principle approval’ to list new ordinary shares
  • Trade AEM, long or short, with an IG account today

AEM share price: What’s the latest?

AEM Holding shares rallied as much as 7.4% on Monday (15 February 2021), after the Singapore unit said it has received an in-principle approval from the Singapore Exchange for the listing and quotation on the mainboard of up to 7,047,237 new ordinary shares.

The electronic service provider’s stocks hit a new all-time high of S$4.60 per share on the day.

The new shares offering is part of a pre-condition for AEM’s earlier offer, worth a reported S$99.5 million, to purchase all the ordinary shares of electronics manufacturer CEI Limited.

AEM announced a final offer price of S$1.15 per share, which comes with an option for all-cash or cash with new AEM shares.

The latter option is available either in the form of 85% cash and 15% new AEM shares, or 70% cash and 30% new AEM shares at an issue price of S$3.55 for each new AEM share.

This means CEI shareholders can opt for either S$0.9775 in cash and 0.0486 of a new AEM share, or S$0.805 in cash and 0.0972 of a new AEM share.

‘We want to give CEI shareholders a choice: They can decide to cash out of a stock with a historically low trading liquidity. Alternatively, they can opt for both cash and the opportunity to stay invested in the sector through AEM post-acquisition,’ Loke Wai San, Chairman of AEM, said in a press release.

Singapore stock preview: AEM, ComfortDelGro, ST Engineering

AEM and CEI ‘will be stronger together

AEM believes that CEI’s business and operations are a strategic fit and will provide synergistic benefits. Loke said both companies ‘will be stronger together’.

Expected benefits from the merger and acquisition include: Improved vertical integration over the entire supply chain assembly; increased level of customer service; enhanced product offering and in-house key capabilities; wider customer reach and cross selling opportunities; and improved manufacturing processes and efficiencies.

‘Adding CEI to AEM’s portfolio solidifies our leadership position in serving semiconductor and electronics companies in the advanced computing, 5G and artificial intelligence space’, Loke added.

‘CEI’s regional footprint and expertise in their field will strengthen AEM’s resilience and allows us to be even more responsive to the needs of our global customer base,' he said.

How to trade AEM shares with IG

Are you feeling bullish or bearish on AEM’s stocks?

Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's industry-leading trading platform, or by investing in the share directly, in a few easy steps:

  1. Create a live or demo IG Trading Account, or log in to your existing account
  2. Enter <AEM Holdings> in the search bar and select the instrument
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

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