Hot stock: Yoma shares jump 20% on Ayala investment despite Q2 loss

SHARES of Yoma Strategic soared on Thursday's market open on news that Philippines conglomerate Ayala would be coming on board as its second largest shareholder after taking a maximum 20 per cent stake in the company for US$155 million.

This was despite the Myanmar-focused company sinking into the red for the second quarter, as separately announced on Thursday.

At 9.04am, the counter jumped 20 per cent or 6.5 Singapore cents to S$0.39, from a flat Tuesday close of S$0.325. By 9.30am, it pared some gains to trade at S$0.365, up four cents or 12.3 per cent.

Yoma on Thursday said Ayala will pay an issue price of S$0.45 per share for its stake, which represents a 37.7 per cent and 36.5 per cent premium over the volume-weighted average price of the shares traded on Nov 12 and Nov 13 respectively.

At least half or more of the placement proceeds will go into funding the growth and expansion of the group's various businesses, with the remainder being used to refinance existing indebtedness and for general corporate purposes.

The move is part of an overall US$237.5 million investment into Yoma Group - which includes Yoma Strategic and affiliated company First Myanmar Investment Public Co, a Yangon-listed company.

Yoma Strategic on Thursday posted a net loss of US$44.2 million for the three months to Sept 30, reversing from a net profit of US$18.8 million a year ago.

This was mainly due to a fair value loss recognition of about US$31.6 million in its plans to dispose of a China investment, which was previously disclosed.

It also saw a drop in revenue for its real estate development segment, partially offset by its consumer segment which saw revenue more than double, according to a regulatory filing on Thursday.