Maybank Kim Eng downgraded Olam International to ‘sell’ from ‘hold’ and cut its target price to $1.42 from $1.75 after the commodities trader announced its fund-raising plan, which is backed by Singapore state investor Temasek Holdings.
Olam is issuing a nominal US$750 million ($915 million) of 6.75% five-year bonds at a price of 95%, raising US$712.5 million.
The bonds have warrants attached that will allow holders to buy a total 387 million shares at US$1.291, which would raise US$500 million if they were all exercised.
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