SINGAPORE (Oct 4): NRA Capital has calculated an indicative fair value of 69 cents for Sino Grandness Food Industry Group, following its Sept 30 announcement of its rights issue to raise minimum net proceeds of about $66.4 million at an issue price of 31 cents per share.

In a Tuesday report, analyst Liu Jinshu notes that the group’s share price fell by 6.5 cents on Monday morning in reaction to the rights issue announcement.

“We remind that the company has outstanding bonds that will be due around March 2017, while also highlighting that the upside can be substantial once the overhang in relation to these bonds is lifted,” says Liu.

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