CCT – Nomura

First look

Friday in Singapore, CCT announced a 1-for-1 rights issue to raise S$828.3mn in gross proceeds — a move we anticipated but the rights units are priced at a steeper discount than what we had factored into our model. While this means our price target has to be lowered to reflect more dilution, adjusted for rights, the stock still trades at an undemanding implied EV of S$1,113psf for CCT’s office space. It appears CCT’s good quality, prime commercial assets remain undervalued.

Pre-empting revaluation deficit