Singapore Stock Market News

Overseas Education Ltd - Until 2019

StockFanatic
Publish date: Sun, 13 Apr 2014, 10:08 AM
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OEL has finally announced its funding plan for the new campus. The positive from its proposed bond funding is no immediate equity dilution. With redemption in 2019 and the campus scheduled to be ready in 2015, OEL could delay any equity raising plans till 2016-18 when earnings should have benefited from higher capacity and fee hikes. We keep our Add recommendation and DCF target price of S$1.08 (9.2% cost of equity).
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