Frencken    Last:2.28    +0.03

Frencken Group Ltd

Frencken&rsquo s $100 mil private placement attracts EQDP fund managers such as Amova, Avanda, Lion Global

Frencken Group Limited (Frencken) (SGX:E28) announced that it has raised approximately $100 million by placing out 44,081,591 new shares at $2.2687 to various institutional, accredited and other investors.

Among the institutional investors that have participated in this private placement includes EQDP managers such as Amova Asset Management, Avanda Investment Management, Lion Global Investors and more.

Other investors including, Asdew Acquisitions, Ginko-AGT Global Growth Fund and ICH Synergrowth Fund participated as well.

Maybank Securities was the sole placement agent for this $100 million private placement.

The estimated net proceeds of around $97.1 million will be used for expansion of existing businesses, strategic investments, mergers and acquisitions (M& A), joint ventures and strategic alliances.

&ldquo The placement will strengthen our resources and flexibility to advance our near- and medium-term expansion plans as well as pursue strategic opportunities to fuel sustainable growth and long-term value creation for our shareholders,&rdquo says Dennis Au, Frencken&rsquo s president.

Frencken adds that the group is in the midst of constructing of a new facility in Singapore to strengthen the capacity and capabilities of its Mechatronics operations.

&ldquo This facility is slated to be operationally ready by the second half of 2027. It is also reviewing a potential expansion of the Mechatronics operations in Malaysia to cater for current and future business needs,&rdquo Frencken adds.

Based on current business indicators, Frencken is keeping a positive outlook for the second half of the year ending Dec 31, 2026.

Finally, given the present trajectory of its existing core businesses, Frencken says that the group is confident of achieving annual revenue of $1 billion by 2028, if not earlier, barring any unforeseen circumstances.

Shares of Frencken closed 2 cents lower, or down 0.88% at $2.25 on Sept 3.

 

Today go up 240. Stromg broker house buying

 

now go back where is fall from before placement

piscesmonkey      ( Date: 03-Sep-2026 11:56) Posted: Bought 225 and 226 velow placement is a buy 🤣

 

Bought 225 and 226 velow placement is a buy 🤣

 

The underlying issue is that from a markets standpoint it did not seem a good time to do a placement, given a) the share price had only recently fallen 30%, and b) on top of this decline they had to offer a further 10% discount to get the placement away. They should only have done this if they were desperate for the money.   

cfdking      ( Date: 02-Sep-2026 22:25) Posted: if they dun place it now when the price is still high &   at a discount you think got takers?? too bad it will be below placement price soon Alignment      ( Date: 02-Sep-2026 18:12) Posted: Not a good sign when a company willing to sell shares at $2.27 when only a few months ago they were trading at over $3.45.

 

if they dun place it now when the price is still high &   at a discount you think got takers?? too bad it will be below placement price soon

Alignment      ( Date: 02-Sep-2026 18:12) Posted: Not a good sign when a company willing to sell shares at $2.27 when only a few months ago they were trading at over $3.45.

 

Not a good sign when a company willing to sell shares at $2.27 when only a few months ago they were trading at over $3.45.

 

$2.26 is a very strong support.
It is fair that retailer can buy at the same price as the new share.
Continue to accumulate...... AI is the future.

muifan      ( Date: 02-Sep-2026 11:04) Posted: Now below placement price ... look bad

 

Now below placement price ... look bad

 

Tng of CGSI maintains ' add' call on Frencken following $100 mil placement but trims target price

William Tng has maintained his bullish call on Frencken Group after its plans to raise some $100 million by placing out new shares at around $2.27 each, which is a discount of 10% off the trades done just prior to the announcement.

Frencken plans to channel proceeds to fund expansion, including investments to strengthen manufacturing capacity and capabilities of its mechatronics and advanced
plastics solutions business.

Frencken wants to have better flexibility to make acquisitions or form joint ventures in a &ldquo timely manner&rdquo as part of its bid to drive long-term sustainable growth.

The company says the placement can help broaden its share base as well.

In its recently reported 1HFY2026 numbers, Frencken says semiconductor revenue from its Asia business is likely to grow in the current 2HFY2026. Demand from its key customer in Europe remains strong, with an anticipated ramp-up in production.

&ldquo Management sees the robust semiconductor demand from customers extending into FY2027, and possibly into FY2028,&rdquo says Tng.

Citing the management&rsquo s guidance of a strong recovery in the coming FY2027 to FY2028, as well as support from the government-led measures to boost the market, Tng has kept his &ldquo add&rdquo call.

Tng is projecting EPS to grow at a CAGR of 8.8% over FY2025 to FY2028, with potential for higher earnings in FY2027 to FY2028.

He has applied the same 28x FY2027 earnings valuation multiple, which is 4 sd above its five-year average. As the share base will increase by 9.31%, correspondingly, Tng&rsquo s target price has been lowered from $3.25 to $2.93.

For Tng, re-rating catalysts include faster recovery in the semiconductor segment driven by new end-consumer products, and better cost controls, resulting in higher-than-expected earnings.

On the other hand, downside risks include further cost escalation, thereby dampening earnings and any potential weakening demand for the semiconductor segment, which will reduce Frencken&rsquo s earnings outlook.

Frencken Group shares traded at $2.34 as at 3.05 pm, down 0.43%.

 

Frencken (E28): Placement &mdash Bad News or Strategic Opportunity?

For fellow Frencken shareholders, including those adversely affected by the recent price decline, I think it is useful to separate the short-term market reaction from the longer-term fundamentals.

Frencken is raising about S$100m by issuing 44.08m new shares at S$2.2687, around a 10% discount to the pre-placement VWAP. The new shares represent about 9.31% of the enlarged share base.

Why did the share price fall?

The immediate reason is understandable:

10% discounted placement + ~9.3% dilution = short-term selling pressure.

So the market reaction should not be surprising.

But there is another side to the story.

Approximately S$87.4m (90% of net proceeds) is intended for business expansion, manufacturing capacity, strategic investments, M& A, JVs and alliances, particularly in Mechatronics and Advanced Plastics Solutions. Only about S$9.7m is earmarked for working capital/debt repayment.

An encouraging signal

Existing substantial shareholder Amova Asset Management Asia is subscribing for approximately 2.922m placement shares.

This does not guarantee the share price will recover, but it does indicate that a sophisticated institutional shareholder is prepared to commit additional capital to Frencken at the placement price.

The real question for shareholders

The placement itself is neither automatically bullish nor bearish.

The key question is:

Can Frencken generate enough additional earnings and cash flow from the S$97.1m net proceeds to more than compensate shareholders for the dilution?

If the new capital produces attractive returns through capacity expansion, semiconductor-related demand and successful strategic investments, today' s dilution could ultimately prove value-accretive.

If the capital is deployed poorly or returns are insufficient, shareholders will have suffered dilution without adequate compensation.

My takeaway

Short term: Negative &mdash dilution and discounted placement explain much of the selling pressure.

Medium/long term: Potentially positive &mdash provided management converts the new capital into higher revenue, earnings and free cash flow.

Therefore, rather than simply asking " Why did Frencken raise money?" , I think the more important question is:

" How effectively will Frencken deploy this S$97.1m?"

That is what I will be watching in the next few quarters.

I am also affected by the price decline, so this is not intended to promote or defend the stock. It is simply an attempt to assess the placement objectively.

DYODD &mdash not investment advice.

cfdking      ( Date: 31-Aug-2026 09:06) Posted: so fast below placement price...is it gd new??? no support at all

 

Don' t know....... but I am adding...... 😁

bishan22      ( Date: 31-Aug-2026 20:00) Posted: Can add?? Trainner      ( Date: 31-Aug-2026 18:41) Posted: After the market suggested the event on new shares..... it should go back to normal uptrend.....

 

Can add??

Trainner      ( Date: 31-Aug-2026 18:41) Posted: After the market suggested the event on new shares..... it should go back to normal uptrend.....

 

After the market suggested the event on new shares..... it should go back to normal uptrend.....

 

Shortists Kenna slashed today.
If tonight Nasdaq bounce, then they might have to longed.

 

$2.26 should be the base.
Shortists made a kill at the open, taking the advantage of the weak technology sector.
Very soon, the shortists will turn " longists" ..... limited vocabulary......
This is why stock market is fun and exciting.
Anyhow, dyodd, may be good time to accumulate....
Cheers~~~~ the sky is not falling.....

cfdking      ( Date: 31-Aug-2026 09:06) Posted: so fast below placement price...is it gd new??? no support at all

 

so fast below placement price...is it gd new??? no support at all

 

Near time price turbulence, strong AI trend is still intact, I am quite bullish on long term.
Take this opportunity to accumulate more.

Joelton      ( Date: 29-Aug-2026 13:37) Posted: Frencken shares drop 8.3% after S$100 million placement [SINGAPORE] Shares of technology solutions provider Frencken : E28 -6.69% fell as much as 8.3 per cent on Friday (Aug 28), after it announced plans to raise S$100 million through a proposed placement. The counter fell to as low as S$2.33 at market open, losing S$0.21 from its previous closing price on Tuesday. Trading of the shares had been halted on Wednesday and Thursday. Frencken on Thursday announced that it plans to raise S$100 million through a proposed placement of 44.1 million shares at S$2.2687 each. The new shares will be offered privately to institutional and accredited private investors. The proposed placement share price is at a 10 per cent discount and represents about 10.3 per cent of the existing issued shares as at Thursday. The new shares will represent 9.3 per cent of the enlarged number of issued shares after the placement is complete. In the year to date, shares of Frencken are up 78.9 per cent due to the artificial intelligence boom. Among its customers are chipmaking equipment makers Applied Materials and ASML &ndash key players in the AI trade. In comparison, other Singapore-listed semiconductor firms have experienced a greater boost. AEM : AWX -1.76% shares are up more than four times, while UMS Integration : 558 -2.19% is up about 130 per cent.

 

Frencken shares drop 8.3% after S$100 million placement

[SINGAPORE] Shares of technology solutions provider Frencken : E28 -6.69% fell as much as 8.3 per cent on Friday (Aug 28), after it announced plans to raise S$100 million through a proposed placement.

The counter fell to as low as S$2.33 at market open, losing S$0.21 from its previous closing price on Tuesday. Trading of the shares had been halted on Wednesday and Thursday.

Frencken on Thursday announced that it plans to raise S$100 million through a proposed placement of 44.1 million shares at S$2.2687 each. The new shares will be offered privately to institutional and accredited private investors.

The proposed placement share price is at a 10 per cent discount and represents about 10.3 per cent of the existing issued shares as at Thursday. The new shares will represent 9.3 per cent of the enlarged number of issued shares after the placement is complete.

In the year to date, shares of Frencken are up 78.9 per cent due to the artificial intelligence boom. Among its customers are chipmaking equipment makers Applied Materials and ASML &ndash key players in the AI trade.

In comparison, other Singapore-listed semiconductor firms have experienced a greater boost. AEM : AWX -1.76% shares are up more than four times, while UMS Integration : 558 -2.19% is up about 130 per cent.

 

So far only Amova is the only one identified. The others are institutions and accredited investors.

PQTPQK      ( Date: 28-Aug-2026 14:21) Posted: any ideas they place to who ? Joelton      ( Date: 28-Aug-2026 14:20) Posted: Frencken aims to raise $100 mil placing out shares at $2.2687 Frencken Group plans to raise just over $100 million by placing out 44,081,591 shares at $2.2687. At this level, the placement price is 9.997% off the last VWAP of $2.5207. If fully placed out, the placement shares will expand Frencken' s total share base by 9.31%. Maybank Securities, which has been appointed to help sell the shares, will get a cut of 2.5%. Frencken says the new capital will help fund its capex in its mechatronics and advanced plastics solutions businesses. The company wants to have a stronger financial position for greater capability and flexibility to make strategic investments or acquisitions or form joint ventures in a " timely" manner.