CSE Global shares jump on strategic review news

[SINGAPORE] Shares of CSE Global jumped on Friday (Mar 6) on the previous day’s news of a “strategic review”, which could include a full sale of the company.

The counter was up as much as 12.7 per cent on Friday, climbing S$0.16 to S$1.42 as at the midday trading break – its highest since June 2007. It later pared some gains to end the day 4 per cent or S$0.05 up at S$1.31.

The strategic review includes “possible transactions involving the company’s shares and/or all or part of the company’s business and assets”, the company said in a filing.

It also follows CSE Global’s receipt of a non-binding, preliminary indicative expression of interest from an unnamed party to discuss a potential strategic transaction in relation to the company.

In November, CSE Global entered into an agreement to issue nearly 63 million new warrants to a wholly owned subsidiary of Amazon. Each warrant can be converted to one CSE Global share at an exercise price of S$0.7671, or a maximum total of S$48.3 million.

The warrants will fully vest on the condition that Amazon and its affiliates make qualifying payments for products and services totalling US$1.5 billion.

The tech giant is already an existing customer of CSE Global, having engaged the firm for smaller-scale electrification and power management projects in the US over the past few years.

The US$1.5 billion target aligns with Amazon Web Services’ (AWS) massive infrastructure expansion, both regionally and globally. In May 2024, the tech giant committed to doubling its investment in Singapore with an additional S$12 billion outlay by 2028, to support growing demand for cloud technology and generative artificial intelligence (AI). This brought its total planned investment in the country to more than S$23 billion.

In February 2025, Amazon also unveiled its new office at IOI Central Boulevard Towers, designating it the “AWS Asia-Pacific Hub” to anchor its regional operations.

Globally, the company has projected that capital expenditures could reach US$200 billion this year, largely driven by the race to build out data centre capacity for AI.

CSE Global’s controlling shareholder is Heliconia Capital Management, a wholly owned investment firm of Temasek, which requested the review.

The systems integrator’s net profit surged 87.1 per cent to S$21.2 million for the second half ended Dec 31, up from S$11.3 million in the year-ago period.

In response, RHB analyst Alfie Yeo on Monday increased its 2026 to 2027 earnings forecasts marginally in anticipation of the Amazon orders, and lifted the stock’s price target from S$1.22 to S$1.48.

The brokerage also increased its revenue estimates, expecting CSE Global’s Amazon orders to scale up – albeit offset by higher expenses and lower margins in preparation for that order increase.

In February, CSE Global also announced that its fourth-quarter orders more than doubled to S$514.7 million on US electrification demand.

The company designs, installs and maintains two-way radio communications for both permanent and temporary locations. The industries served include critical infrastructure, data centres and energy sectors.