[工业建筑] 20080619-OSK-Tanjung Offshore

Fund raising for future
TgOff is proposing a fund raising exercise, involving renounceable rights of up to
50.5m new shares together with 50.5m free new detachable warrants. Total fund
raised is expected to be approximately RM75.8m which would cover some
acquisitions in pipeline as well as the construction of vessels, lift barges and oil
rigs. Upon completion, TgOff’s net gearing will be reduced to some 0.7x vs 1.6x as
at FY07. We expect total borrowing to stay around the same level in view of the
funding requirement. We maintain our target price at RM3.08 for now based on
average 16x FY09 EPS and 3.5x NTA. Our fully diluted fair value of RM2.68 is based
on the average value derived from the minimum and maximum scenario. Buy.