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PROPOSED PLACEMENT OF 50,000,000 NEW ORDINARY SHARES IN THE CAPITAL OF THE COMPANY AT THE PLACEMENT PRICE OF S$2.90 FOR EACH PLACEMENT SHARE - RECEIPT OF APPROVAL IN-PRINCIPLE FROM THE SGX-ST
HLA should look into IPO in Nasdaq. Hehe?
Hong Leong Asia offers 50 mil new shares at $2.90 each
Conglomerate Hong Leong Asia (HLA) is offering 50 million new ordinary shares at a placement price of $2.90, according to a bourse filing on April 29.
The placement price represents a discount of approximately 5.76% to the volume weighted average price of $3.0771 for trades done on the Singapore stock exchange (SGX-ST) on April 27, being the last full market day on which HLA&rsquo s shares were traded prior to the trading halt called by the company before trading hours on 28 April 2026 and up to the time of execution of the placement agreement with CGS International Securities.
Approximately $113.8 million, representing 80% of net proceeds of $142.3 million, will go towards general corporate activities including but not limited to investments, acquisitions, business expansion and repayment of bank borrowings. The remaining 20%, or $28.5 million, will be used to meet the general working capital requirements of the business.
HLA shares that net proceeds, pending deployment, may be deposited with banks or financial institutions, invested in short-term money market instruments or marketable securities, and/or used for any other purpose on a short-term basis.
After completion of the placement, the total number of issued shares for HLA will increase to more than 798 million. On a pro-forma basis where it is assumed that the placement was completed on Dec 31, 2025, net tangible asset per share will increase to $1.4134 from $1.3177. For earnings per share, if the placement was completed on Jan 1, 2025, EPS for FY2025 will be diluted from 15.08 cents to 14.14 cents.
The new shares are issued in accordance with the general share issue mandate granted by shareholders at HLA&rsquo s AGM on April 24. The company may issue up to more than 149.6 million new shares
The placement is not underwritten and is scheduled to be completed not later than May 11.
As at around 10.10 am on April 29, shares in Hong Leong are trading at $2.95, down 11 cents or 3.6%.
All got diluted , why the controlling Sh so willing also ?
HLA and AEM
Hong Leong Asia (HLA) and AEM Holdings share some placement similarities as growth-oriented SGX firms using equity raises for strategic capital, but key differences exist in structure, subscribers, and context&mdash no direct JPM Chase parallel for HLA.
Similarities
Both executed recent placements amid strong fundamentals to fund expansion/liquidity:
Differences
Takeaway: HLA' s is a classic base-broadening placement like many industrials AEM' s more " strategic alliance" with warrants. JPM in AEM was opportunistic buying post-announcement, boosting visibility&mdash HLA could see similar if funds add. Both accretive long-term if executed, but HLA' s simpler/no conditions lowers execution risk. DYODD.
Hong Leong Asia (HLA) and AEM Holdings share some placement similarities as growth-oriented SGX firms using equity raises for strategic capital, but key differences exist in structure, subscribers, and context&mdash no direct JPM Chase parallel for HLA.
Similarities
Both executed recent placements amid strong fundamentals to fund expansion/liquidity:
| Aspect | HLA (Apr 2026) | AEM (Mar 2026) |
|---|---|---|
| Size | S$145M (50M shares @ S$2.90, ~6.3% dilution) | S$129M potential (3.35M shares @ S$3.59 + warrants, up to 9.1% dilution) |
| Purpose | Balance sheet strength, investor base diversification (low 22% float) | AI/HPC growth via ASE partnership (revenue milestones for warrants) |
| Fundamentals | FY25 PATMI +28.5% to S$113M, S$1.6B cash | Strong test/handling demand |
| Market Reaction | Discount 5.8% to VWAP institutional interest | Strategic tie-up with ASE boosted sentiment |
| Analyst View | UOBKH TP S$4.20 | Positive on growth mandates |
| Aspect | HLA | AEM |
|---|---|---|
| Structure | Straight new shares (no warrants/conditions) | Shares + performance-linked warrants (Tranche 1/2 tied to S$30M/S$50M ASE revenue) |
| Subscribers | SG funds (Lion Global, Avanda, Amova, Ginko-AGT, ICH&mdash reputable but local/regional) | ASE Test (semicon giant subsidiary)&mdash strategic partner, not passive funds |
| JPM Role | None (no JPM involvement) | JPMorgan Chase built ~7% stake via open-market buys (e.g., Apr 2026: +S$5.1M for 1.07M shares to 6.3% later 7.02%)&mdash not a placement subscriber |
| Context | Liquidity for low-float stock + HK spin-off prep | Direct industry partnership for AI expansion |
sfw2124 ( Date: 29-Apr-2026 22:32) Posted:
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Hong Leong Asia' s (HLA) S$145M share placement of 50M new shares at S$2.90&mdash announced April 29, 2026&mdash is a strategic move backed by solid FY2025 fundamentals (PATMI up 28.5% to S$112.8M, revenue +22% to S$5.18B, S$1.6B cash, operating cash flow +105%), not a distress raise.
Balanced View
Credible Singapore funds (Lion Global, Avanda, etc.) subscribed at a 5.8% discount to S$3.08 VWAP, diversifying the ~22% pre-placement free float (78% insiders/Hong Leong Group) and signaling institutional confidence, though post-lockup sales remain a risk.
HK Spin-Off Catalyst
HLA' s proposed spin-off of indirect subsidiary Guangxi Yuchai Marine & Genset Power (MGP)&mdash a high-growth marine/generator business under 48.7%-owned China Yuchai Intl&mdash targets HKEX Mainboard listing (application filed Jan 2026, SGX " no comment" ). This could unlock value via separate valuation (analysts see DC/AI tailwinds, upgraded CYD P/E to 15x), crystallize gains for HLA shareholders without full disposal, and fund MGP growth independently&mdash potentially accretive if listing premium materializes (subject to approvals/market conditions).
Price Outlook
UOBKH target S$4.20 (avg ~S$4.43) supports 6-12 month upside from recent S$3.00-S$3.15 trading, driven by H1 Aug catalysts and spin-off progress&mdash but 6.3% dilution and execution risks apply.
Bottom line: Placement boosts liquidity amid strong base spin-off adds re-rating potential if executed. Watch results/deployment. DYODD.
msksmsks ( Date: 29-Apr-2026 13:21) Posted:
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Who wl wanna take up such a big placement
of $145mil if nothing to gain . No brainer la
More than to meet the eyes
More upside coming...
Be patient
of $145mil if nothing to gain . No brainer la
More than to meet the eyes
More upside coming...
Be patient
Based on my limited knowledge, share placement for a not so good fundamental company is basically to raise more money and run. Bye bye. While it is the opposite for good fundamental company, HLA. Like many said, it is to increase the spread of good and powerful investors so that not one or 2 investors determine the company share prices. Hence, it might look more like an ETF to me with fantastic potential upside.
Like everyone, we first target on $4 then we move to $5. I believe $6 is possible within a year starting from May - in which the placees have gotten the shares.
These new investors/placees buying in at $2.90 would expect the gain to be at least double for a year otherwise it would be a waste of their time. Hence my conclusion is $6.
These wolves will also not settle with single return. These beasts want more (double) thus again my conclusion to hit $8 is a matter of time.
Come August, the half year report card will have astronomical results and needless to say for their year end which will be report Feb 2027.
Certainly looking forward to see this counter performance 40% gain in a day just like nanofilm. If based on $3, 40% gain would be around $4.20, UOB target price.
Yeap, this placement exercise certainly perks me up even more. Entered again. I am mad to hold $m of this HLA and she has to perform otherwise will be condemn by these wolves including us. Hahaha&hellip
Like everyone, we first target on $4 then we move to $5. I believe $6 is possible within a year starting from May - in which the placees have gotten the shares.
These new investors/placees buying in at $2.90 would expect the gain to be at least double for a year otherwise it would be a waste of their time. Hence my conclusion is $6.
These wolves will also not settle with single return. These beasts want more (double) thus again my conclusion to hit $8 is a matter of time.
Come August, the half year report card will have astronomical results and needless to say for their year end which will be report Feb 2027.
Certainly looking forward to see this counter performance 40% gain in a day just like nanofilm. If based on $3, 40% gain would be around $4.20, UOB target price.
Yeap, this placement exercise certainly perks me up even more. Entered again. I am mad to hold $m of this HLA and she has to perform otherwise will be condemn by these wolves including us. Hahaha&hellip
Accumulate
I think this is one of the reasons they want to increase the investor base.
Whether a company can perform or not depends on the quality
and integrity of the management.
If mangement is intent on increasing shareholder value, it does not
matter who owns how much.
Just my opinion, please dyodd.
Whether a company can perform or not depends on the quality
and integrity of the management.
If mangement is intent on increasing shareholder value, it does not
matter who owns how much.
Just my opinion, please dyodd.
Exactly when the stock is own just by a group ,it can hardly perform HLF is another one
For HLA, freed float is quite low, only about 21% or 31% (I forgot which,
but I think it is the former. ).
Insiders (people of the Hong Leong Group) own the vast majority of the shares.
but I think it is the former. ).
Insiders (people of the Hong Leong Group) own the vast majority of the shares.
Fully agreed. Keep for the next 6-12 months, will probably see the bright sunlight. I believe $4 is well within reach. Good luck to investors of HLA.
ahberngh ( Date: 29-Apr-2026 08:59) Posted:
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cheap cheap don buy..
once abv 3, wl start chasing...
HLA is well positioned for growth trajectory
placement not coincidental ....there is a reason
am glad to be able to grab the lelong sale
once abv 3, wl start chasing...
HLA is well positioned for growth trajectory
placement not coincidental ....there is a reason
am glad to be able to grab the lelong sale
msksmsks ( Date: 29-Apr-2026 09:04) Posted:
|
I managed to pick up some shares this morning at attractive prices.
Thanks to the short sellers, force selling and contra players.
Thanks to the short sellers, force selling and contra players.
I guess increasing their china investor base will be terrific when they eventually spin off yuchai on hkx
ahberngh ( Date: 29-Apr-2026 08:59) Posted:
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Down 12c, a knee jerk reaction.
Unfortunately, I have no more bullets to buy in.
Unfortunately, I have no more bullets to buy in.
Good opportunity to buy cheap
Slurping....
Slurping....
I thought HLA has plenty of cash in the kitty.
If so, they don' t need money, this placement is mainly
targetted for certain entities in Singapore and China, to broaden their
investor base, as they said??
If so, they don' t need money, this placement is mainly
targetted for certain entities in Singapore and China, to broaden their
investor base, as they said??
This will go down today