Singapore construction firm Lian Beng Group (LIBG.SI) rose as much as 5.6% on Wednesday, extending recent gains on news it plans to spin off its engineering and concrete units in Taiwan, and as brokers highlighted its attractive valuations.
At 9:58 a.m., shares of Lian Beng were 4.2% higher at $0.37 with over 12 million shares changing hands. This was about 6 times its average daily volume over the last five sessions.
“The spinning off of its subsidiaries will help to unlock value,” said a local dealer, and Kim Eng Securities noted that the listing will help to bolster Lian Beng's cash position.
DMG & Partners estimates the listing may take six to nine months. It believes Lian Beng, which trades at 3.4 times earnings, has the capacity to trade in line with the sector average of 7 times, helped by its strong order book of $839 million.
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