Ezion Holdings announced that it has entered into a subscription agreement with Rotating Offshore Solutions Pte Ltd (ROS) in which it will subscribe for 321,429 shares in ROS for a consideration of S$18m. The shares will constitute 30% of the enlarged share capital after completion. In satisfaction of the subscription consideration, Ezion will issue 17.5m shares at an issue price of S$1.0287.

This represents approx 1.09% of the enlarged issued share capital of the Ezion. ROS is headquartered in Singapore and is an engineering solution provider for the offshore oil and gas industry. Pending more details from management, we maintain our BUY rating and fair value estimate of S$1.55 on Ezion.

Source: OCBC Research - 8 Jul 2015