Singapore Airlines *Official* (SGX:C6L)

[Sinkie]

It’s true. If he didn’t blow his own trumpet, nobody else would have blown it for him.

The market has spoken

$5.90/$5.91

 

[edwinttt1978]

most ppl wouldn't know what they are saying in this rights, bonds exercise.

never mind about the peanut u can arbitrage from excess. enough of that in 2008.



hence i siam. good luck to all vested ppl (sarcastically).

SIA is not even in es3 iirc? not vested either. iwda for long term n shake leg.

That’s right. Bond exercises are way beyond many people.

So, siam far and observe from far.
But be positive. “Temasek magic” will overcome.

 

[henrylbh]

That’s right. Bond exercises are way beyond many people.

So, siam far and observe from far.
But be positive. “Temasek magic” will overcome.

The rights mcb is like a sweetener with the rights share? Just like rights share with warrant, though it's not free in this case, but it has built-in accretion.

 

[edwinttt1978]

The rights mcb is like a sweetener with the rights share? Just like rights share with warrant, though it's not free in this case, but it has built-in accretion.

I must admit I only glanced through the MCB. Prospective buyers should read up more on it.

In my opinion, at zero coupon, the MCB seems poisonous rather than a sweetener.

In my opinion, it means “We want money from you. But we can’t pay you interest. You may convert the bonds to mother shares by forking up more money at the 10th year. Thank you for your support.”

 

[yiron]

The rights issue (rights share and rights mcb and additional mcb) will be treated as equity in the company's balance sheet. It also provide shareholders with opportunity to maintain their equity participation in the company.

Treated as equity yet your pay-off is fixed income like? Like I said for the MCBs, you are taking on equity downside while compensated only with fixed income upside. If that's a good deal for you, go ahead and buy. I'll rather put that money elsewhere.

 

[arctician]

most ppl wouldn't know what they are saying in this rights, bonds exercise.

never mind about the peanut u can arbitrage from excess. enough of that in 2008.



hence i siam. good luck to all vested ppl (sarcastically).

SIA is not even in es3 iirc? not vested either. iwda for long term n shake leg.

to be frank you are right the arbitrage is really v little, if XR if $4 you probably only gg to make 30% upside. If apply excess and allocated $10K only $3000. Think must apply more excess otherwise really peanut. Applying for excess is really luck based, i did it for DBS in 2009 never get, but got in full for capital retail REIT...see luck and allocation

 

[cherry6]

I am also worried about further rights issue if the pandemic is not recovering and grounding of aircraft extends longer .... dun think shareholders will subscribe if there is 2nd round of rights issue ...

U got no choice lah.

Next rights issue will be based on share price of $4.

Pay $2 to convert 3 rights to shares for every 2 existing shares, more MCB sold.

U don't pay $6 for every 2 shares u now have, don't sell away your rights, u lugi money.

SIA still flying ministers around.

But your share price drops to the ground.

National service is a privilege.

Always be 'happy' to own SIA shares.

 

[cherry6]

The market has spoken

$5.90/$5.91

Fair price to buy 100 shares to get rights (excess) is how much?

 

[Sinkie]

Fair price to buy 100 shares to get rights (excess) is how much?

Tembusu came support le. Likely $5.90 closing

 

[cherry6]

Tembusu came support le. Likely $5.90 closing

How do u know, and what is the point of doing so?

Even if close higher today, what's the big deal,

Tomorrow can laosai some more, when new converted shares begin trading, laosai even more.

Temasek also needs to declare their holdings. Next time declare 65% and SIA share price drops further. All the Merdeka and Pioneer will riot to get back their CPF money.

Many will riot I wheel chair I suppose.

 

[Sinkie]

How do u know, and what is the point of doing so?

Even if close higher today, what's the big deal,

Tomorrow can laosai some more, when new converted shares begin trading, laosai even more.

Temasek also needs to declare their holdings. Next time declare 65% and SIA share price drops further. All the Merdeka and Pioneer will riot to get back their CPF money.

Many will riot I wheel chair I suppose.

They don’t need to buy themselves, they can ask their friends to support

So if close $5.90, what is the likely price it will open tomorrow?

 

[edwinttt1978]

After reading up on the rights MCB, one good thing is that there is no need to come up with $4.84 at the end of 10th year to convert the MCB into share. Perhaps, this is an artificial sweetener.


• Number of Shares to be issued upon conversion of Rights MCBs= S$1,806.11 / S$4.84 = 373 Shares (rounded down as fractional entitlements are disregarded)

No additional cash is required from MCB holders upon the mandatory conversion of Rights MCBs into shares.
https://www.singaporeair.com/saar5/pdf/Investor-Relations/Rights-Issue/EGM-Q-and-A-2020.pdf

 

[edwinttt1978]

Also, watch out for an additional mandatory convertible bonds (the “Additional MCBs”), on terms that “are substantially similar to the terms of the Rights MCBs” in the next 15 months.

#HelpUs
#WeAreInThisTogether
#MakeSIAGreatAgain

 

[Sinkie]

Also, watch out for an additional mandatory convertible bonds (the “Additional MCBs”), on terms that “are substantially similar to the terms of the Rights MCBs” in the next 15 months.

#HelpUs
#WeAreInThisTogether
#MakeSIAGreatAgain

Finally someone highlighted this

SIA may issue S$6.2bn additional MCBs in the next 15 months

There may be a further issuance of up to approximately S$6.2bn aggregate principal amount of additional mandatory convertible bonds (the Additional MCBs) within 15 months commencing from the date of the approval by Shareholders for the issue of the Rights MCBs at the EGM

 

[edwinttt1978]

Finally someone highlighted this

SIA may issue S$6.2bn additional MCBs in the next 15 months

There may be a further issuance of up to approximately S$6.2bn aggregate principal amount of additional mandatory convertible bonds (the Additional MCBs) within 15 months commencing from the date of the approval by Shareholders for the issue of the Rights MCBs at the EGM

No wonder Warren Buffett said “We will not fund a company that... where we think that it is going to chew up money in the future.”

High chance of more MCBs to chew up money.
Where to get money? From our dearest, faithful shareholders.

 

[edwinttt1978]

They don’t need to buy themselves, they can ask their friends to support

So if close $5.90, what is the likely price it will open tomorrow?

At $6.50, the TERF was $4.40
At $5.90, the TERF should be around $4.00.

 

[yoyokid]

Actually if you look at their profit, does it look attractive? Profit margin is low. Risk is high, returns is low. Personally I don’t know why many are willing to take a punt. Because it is backed by government?

Without going into the intricacies and esoterics of rights and such, it is best to regard any involvement with the stock market as nothing but punts at best...

.. because ultimately, the reality is that is what it is...
.. no one can predict the outcome, or even the market's next move...

.. in other words, it's all about 'horse's rear cannon'...

 

[cherry6]

At $6.50, the TERF was $4.40
At $5.90, the TERF should be around $4.00.

$(5.91*2+9)/5= $4.164

 

[edwinttt1978]

$(5.91*2+9)/5= $4.164

Absolutely correct!

To elaborate,
TERF
= [(Old shares x Prevailing Price) + (New Shares x Issue Price] / (Old Shares + New Shares)
= [(2 x $5.91) + (3 x $3)] / (2 shares + 3 shares)
= [$11.82 + $9] / 5 shares
= $4.164

The lazy way of calculation is 4% off.

 

[edwinttt1978]

At least four massive Airbus 380s, three SIA Boeing 777-200ERs, two Scoot A320s, and six SilkAir Boeing 737 MAX 8s are in Alice Springs.

#HelpUs
#WeAreInThisTogether
#MakeSIAGreatAgain
————

Alice Springs desert plane storage: Singapore Airlines A380s, 777s arrive in Australian desert
https://www.traveller.com.au/alice-...a380s-777s-arrive-in-australian-desert-h1ntyv

SIA planes fly to Australia to park at Alice Springs for at least a few months
https://mothership.sg/2020/05/sia-planes-alice-springs/