09.25.2001
Ambit and Askey fund raising plans delayed

• Development: Ambit and Askey (2366.TT) have decided to postpone fund raising plans (i.e. GDR for Ambit and ECB for Askey) as slumping share prices for both companies are considered too low.

• Analysis: Although both companies are unable to raise cash, they state that postponement is unlikely to affect company operations. However, liquidity problems may surface if the stock market continues its sluggish trend until 2002.

• Primasia View: Financially speaking, we remain positive on Ambit as firm has not carried any L-T debt since 1997. However, in a worst case scenario, we believe Ambit could take out loans to fund expansion.