Sembcorp bows to market

Singapore''s Sembcorp Industries has backed away from a secondary share sale after watching its share price touch a psychologically damaging S$1.40 level.

Having seen its share price fall steadily since the announcement of roadshows at the beginning of March, the final straw for the government-owned company came on the day of pricing Wednesday, when the counter suffered a sharp fall from S$1.48 $0.82 to S$1.41. Despite the fact that lead manager JPMorgan had gathered a full order book of what many acknowledge to be tier 1 accounts, the company decided not to proceed in the face of a share price which had hit a two-year low.

The deal basically got killed by movements in its own share price and the wider market as a whole, says one banker. It must...

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