Singapore Airlines *Official* (SGX:C6L)

[arctician]

It’s a 10 years zero coupon bond.

Mcb only concern is whether SIA has the money to redemn everyone mcb within 10 years

I didnt readup on mcb coz not interested previously. If its a zero yield bond whats the upside to a investor? Capital gain upon maturity or share price discount upon conversion?

 

[Sinkie]

I didnt readup on mcb coz not interested previously. If its a zero yield bond whats the upside to a investor? Capital gain upon maturity or share price discount upon conversion?

Not interested in the mcb can sell the rights

 

[Sinkie]

I didnt readup on mcb coz not interested previously. If its a zero yield bond whats the upside to a investor? Capital gain upon maturity or share price discount upon conversion?

You can treat it as a side bet that SIA will redemn all MCB within 10 years

You lose if they convert to shares at end of maturity period, unless price is significantly above $6 in 2030

 

[reddevil0728]

Not interested in the mcb can sell the rights

what's the diff between R and R1?

and if you buy the rights now, must you also buy the MCB or are they separate?

 

[Nofear40]

Not interested in the mcb can sell the rights

The MCB rights are not free right? Remember it is at $1

 

[Sinkie]

The MCB rights are not free right? Remember it is at $1

You get 2 rights (additional shares and mcb) from buying the mother share before xr.

You can also buy the mcb rights on xr

 

[Xylitol]

when will the stock price be adjusted due to dilution ?

 

[hwbest]

SIA would never be taken private because it needs access to capital

Very dependable on whether the airlines industry can be as vibrant as pre-Covid19. My views:

1. Likely still restrictions until a vaccine is available (10 months to forever)
2. Depends on the economy and recovery
3. No of airlines bankruptcies and whether SQ can capture the market

Worst scenario is SIA is taken private like SMRT? The airline can still fly high, senior executives continue to earn big bucks but shareholder investment gone

 

[Paul Lee]

what's the diff between R and R1?

R is for broad lots of 100 Rights (Either SIA or SIA MCB)
R1 is for the trading of odd lots of Rights. (anything <100)

 

[Paul Lee]

The MCB rights are not free right? Remember it is at $1

The MCB Rights are free.

You pay $1 to exercise the MCB Rights and then you will get the MCB.

Very important to know the difference!

 

[arctician]

You get 2 rights (additional shares and mcb) from buying the mother share before xr.

You can also buy the mcb rights on xr

thanks for pointing this one, all along i thought you get 3 right shares for 2 shares in SIA, didnt know MBC included also.

Must go read their offer document already, for me i just want to activate option where i can subscribe to excess rights, looks like risk of long term dilution are high

 

[maxxken]

I hv 1000 shares at present moment, if i were to buy all the 1500 rights @$3, what will happen now? Can i hold on to it for long term or will these rights convert to mother shares.

 

[arctician]

I hv 1000 shares at present moment, if i were to buy all the 1500 rights @$3, what will happen now? Can i hold on to it for long term or will these rights convert to mother shares.

it will be converted to mother shares which will trade at XR theoretical price of $4+

 

[maxxken]

it will be converted to mother shares which will trade at XR theoretical price of $4+

Thanks for the reply! That means i will have 2500 normal shares in total and i can trade them normally at market, says 3-5 years later if the market is good?

 

[Trader11]

Buying SIA at 1

 

[arctician]

Thanks for the reply! That means i will have 2500 normal shares in total and i can trade them normally at market, says 3-5 years later if the market is good?

no need wait so long, next 1-2 weeks you get to sell your rights then i think by month end you get to exercise your option or subscribe excess rights, then maybe june it will trade normally at XR price of $4+. Exact dates need to refer to sia offer document, i only bought 200 shares this morning never pay too much attention

 

[5star_pundit]

Silkair one of SIA subsidiaries have resume flights to china which is good news

 

[5star_pundit]

By right SIA should be trading below $5 post rights issue but don't know why the market is still on the uptrend

 

[maxxken]

no need wait so long, next 1-2 weeks you get to sell your rights then i think by month end you get to exercise your option or subscribe excess rights, then maybe june it will trade normally at XR price of $4+. Exact dates need to refer to sia offer document, i only bought 200 shares this morning never pay too much attention

Thanks! Now I’m thinking of maybe leaving the 1500 rights together with my 1000 in cdp and see where will it go. I bought my 1000 at 11.4 years ago, don’t know when to take back my capital

 

[arctician]

By right SIA should be trading below $5 post rights issue but don't know why the market is still on the uptrend

now still CR, XR is 6th may i think

Thanks! Now I’m thinking of maybe leaving the 1500 rights together with my 1000 in cdp and see where will it go. I bought my 1000 at 11.4 years ago, don’t know when to take back my capital

10years at 5% yield already cumulative 50% dividends, most impt thing is to subscribe to the rights or sell it, worst mistake is to do nothing and let your shares be diluted. Think there is some retirees who dont know about all these right issues and just leave stock there, this only benefit other investors who subscribe to excess rights at $3.