• Grand Venture Technology (GVTL) has completed its second placement, which we estimate leads to S$25.0-26.4m available for acquisitive growth.
• Grand Venture Technology has also started the process of transferring its listing from the current Catalist Board to the Mainboard.
• Reiterate ADD rating. Accretive M&As could be catalysts to Grand Venture's share price.

War Chest Buffered Further

• On 14 Sep 2021, Grand Venture Technology (SGX:JLB) completed the placement of 25.0m new shares at S$1.14 per share for an aggregate S$28.5m (net proceeds after placement cost is S$27.5m.
• Grand Venture Technology intends to deploy the placement proceeds to build on the group’s competencies, customer base and scale of its capacity. The placement proceeds have been earmarked for business expansion via M&A, joint ventures, partnerships and investments to enhance its operational and engineering capabilities (per Grand Venture's announcements via SGX).
• In Jan 2021, Grand Venture Technology placed 71.5m new shares at S$0.33 apiece, raising net proceeds of S$23.5m. Together with its second placement, we estimate that Grand Venture Technology has earmarked S$25.0m-26.4m for M&A purposes.

Transfer to Mainboard Will Broaden Shareholder Base

• On 21 Sep 2021, Grand Venture Technology submitted its application to the exchange to be able to invest in the company.

Reiterate ADD on the Cash From the Placement of the New Shares.

• Key Downside Risks Are Stronger-than-expected Results and Accretive M&As

Source: CGS-CIMB Research - 7 Oct 2021