Frencken

$Frencken(E28.SG)

Why did they price the private placement at 2.27 and drag everyone down

It's coming to the end of the month - also where most of the major companies have already reported earnings. As expected, the earnings season has seen some companies rally after posting magnificent results while others slump after posting weaker guidance or simply just due to traders taking profit. It is important to monitor and read in depth into the earnings report of your holdings, but also sometimes the share price don't go as expected due to fear (of say higher capex for e.g.) or just because it was already priced in.

Frencken’s private placement has diluted the share price but I think there is no need to panic. The new capital will give the company a more solid financial position to pursue expansion and mergers and acqusitions.

It will be Fed chairman Warsh’s first speech at Jackson’s Hole and the market will be closely trying to figure out his stance. Hawkish or dovish? I don’t think he will say much but maintain that the Fed will do what is necessary yadah yadah. 🤓

The triple kaiju week is finally ending and the pent up cautious sentiments would be partially, if not fully released. All eyes on the new Fed chair on his lean towards hawkiness or dovishness. It shows the muscle of the market is still the bond market.

Iggy's Journal: Frencken Falls 8% After a S$100 Million Placement

28 August 2026, PM

News:

Frencken (E28) fell as much as 8.3% on Friday after proposing a S$100 million share placement, Business Times reported (Shikhar Gupta, 28 August 2026). It opened as low as S$2.33, down S$0.21 from Tuesday's close of S$2.54. Trading was halted on Wednesday and Thursday.

The placement is 44.1 million new shares at S$2.2687, a 10% discount to the 25 August volume-weighted average price of S$2.5207, placed privately with institutional and accredited investors. That is about 10.3% of existing issued shares, and 9.3% of the enlarged base after completion. BT (Young Zhan Heng, 27 August 2026) said completion is expected on 3 September.

The company said the raise is to fund expansion in manufacturing, mechatronics, and advanced plastic solutions, and to leave room for strategic investments and M&A. After fees, about S$87.4 million (90%) is earmarked for that expansion and the balance sheet, and about S$9.7 million (10%) for working capital or bank-loan repayment. As at 30 June, Frencken had S$123 million in cash and S$53.2 million in borrowings. Mechatronics, including the semiconductor business, was 90.1% of first-half FY2026 revenue.

Year to date Frencken is still up 78.9% on the AI boom, BT said. Customers named include Applied Materials and ASML. 

Just Reporting:

This is a placement story, not a yield story. Frencken is not on the forensic ledger, so there is no zone line to restate. The 8% open is the market pricing a 10% discounted issue after a 78.9% year. On BT's own figures they already hold S$123 million of cash against S$53.2 million of borrowings, so this is not a cash-hole raise on those numbers. Whether the extra shares fund real capacity or just sit in front of the same earnings is a different question. AEM's year and UMS's year stay their own facts. They do not confirm anything about this name.

Not financial advice. 

Cheers, Iggy 🦖

Curious and excited for the brand new Fed Chair speaking tonight. Looking out if interest rates drop, will the market respond and SREITS price go up as borrowing costs drop.

Jackson Hole has my attention. With the 30-year yield above 5%, I’m watching how Kevin Walsh responds. This isn’t just a bond-market story—higher long-term rates mean more expensive mortgages, loans and corporate refinancing. If yields stay here, the Fed’s job gets a lot harder.

Jackson hole is probably the most important for this week, although details may be scant

📌 It’s TGIF baby, hope later session wrap up with a good weekend close. A few stocks apparently went UP and hope it continues as it should be, the rest will pick up as swinging is part of this game. 🤺🇺🇸⬆️⛳️