Friday, September 14, 2012

WCT ... Sep12

It had proposed a bonus issue on the basis of three bonus shares for every 20 existing  50-sen shares, and one warrant D for every five shares held on the entitlement date.  This is not an exercise to raise capital but more to increase trading liquidity and reward shareholders. The corporate proposal is a move that may boost trading sentiment on WCT's shares over the immediate term.
Market observers do not expect any significant earnings dilution given the long tenure of the warrants but based on an extreme scenario of full conversion of the warrants, there may be a 20% dilution to financial year 2013 forecast earnings.
WCT has a order book of RM3.7bil with more contracts likely to be awarded before year-end (2012). There are potential growth catalysts from the KLIA2 Integrated Complex, which is scheduled to commence operations by March 2013.

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