KUALA LUMPUR: OSK Research Sdn Bhd has reiterated a "trading buy" call on Puncak Niaga Holdings Bhd with a fair value of RM2.08 following its proposed free warrant and convertible sukuk.
"The free warrant is indeed a sentiment booster," it said in a note today.
As at lunch break, Puncak Niaga's stock price was two sen better at RM1.31, with 349,100 lots traded.
The research house said the proposed convertible sukuk issuance also suggested that the group may move to expand its footprint into the lucrative oil and gas field.
"The management may focus its acquisition target to players within this industry in a bid to further diversify its income flow from water to oil and gas," it said.
Puncak Niaga has proposed to issue up to 40.9 million free warrants on the basis of one warrant for every 10 existing ordinary shares.
The company also proposed a 5-year redeemable convertible secured sukuk of up to RM165 million in nominal value. -- BERNAMA
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