Singapore Airlines *Official* (SGX:C6L)

[edwinttt1978]

For 2000 SIA shares you will be entitled to 3000 rights Shares and 5900 rights MCB. For the share, the theoretical XR price based on today's closing price of $5.91 would be $4.164 per share.

If you don't subscribe to the rights, the theoretical market value of your 2000 shares would be adjusted downwards to 2000 x 4.164 = $8,328 and you would incur a paper loss of $20,000 - $8,328 = $11,672.

If you subscribe for the 3000 rights shares, your cost will increase to $20,000 + $9,000 = $29,000 for total of 5000 shares. At theoretical XR price of $4.164 per share, your paper loss would be $29,000 - $20,820 = $8,180.

Logically, you must subscribe for the rights share to reduce your paper loss, and how much is the actual loss would depend on the actual XR price.

You have the option to sell the rights shares and the theoretical price would be $4.164 - $3 = $1.164 X 3,000 rights shares = $3,492. This would reduce your cost on original 2000 shares from $20,000 - $3,492 = $16,508. The loss on the remaining original 2000 shares would be $16,508 - $8,328 = $8,180.

You are also entitled to subscribe for 5,900 rights MCB at $5,900. Whether there is a market for the rights MCB is difficult to say. If there is a market for it, you can sell the rights MCB to further reduce you cost, if you think the MCB is not worth subscribing for.

You can also try to apply for excess rights share to reduce your cost further.

The final result of the above calculations would all depend on the actual price instead of the theoretical price as market is not logical.

My mistake.

My imaginary 2000 SIA shares would get 3000 Rights Shares & 5900 Rights MCBs.

 

[henrylbh]

paying every single year PRIOR to COVID-19...

It has declared an interim dividend for year ended 31 Mar 2020. Final is not yet known?

 

[edwinttt1978]

If you have no intention to subscribe to the rights, then please sell your rights to recoup some of your capital, your rights are still worth some money $3,492.

If you don't subscribe to the rights, the market value of your 2000 shares will be 2000 x 4.164 = $8,328 and you would incur a paper loss of $20,000 - $8,328 = $11,672 ( if you choose to let your rights to expire to worthless)

And because you sold the rights shares, you will get back $3,492 in cash

This would reduce your cost on original 2000 shares from $20,000 - $3,492 = $16,508. The loss on the remaining original 2000 shares would be $16,508 - $8,328 = $8,180.

There is no “Logically, you must subscribe for the rights share to reduce your paper loss.”

There would sure be some people sleeping on their rights.

 

[henrylbh]

And yes it is so simple

Like that it makes the mcb even more attractive than the shares? Value of mcb grows with compounded interest and final conversion price lowered with dividends, assuming no redemption?

 

[edwinttt1978]

It has declared an interim dividend for year ended 31 Mar 2020. Final is not yet known?

Has it? Must be really burst of dividend if so.

 

[henrylbh]

There would sure be some people sleeping on their rights.

Got chance to to apply for excess of more than 1000 rights share and rights mcb?

 

[henrylbh]

Has it? Must be really burst of dividend if so.

I received 22c per share in Aug 2019.

 

[edwinttt1978]

Got chance to to apply for excess of more than 1000 rights share and rights mcb?

One man’s inactivity is another’s gain.
So higher chances of getting excess for those who are wide awake at the expense of those sleeping throughout the entire exercise.

 

[edwinttt1978]

I received 22c per share in Aug 2019.

There should be another 8c in Nov 2019.
That 8c would probably be the last dividend for many years to come.

 

[reddevil0728]

It has declared an interim dividend for year ended 31 Mar 2020. Final is not yet known?

yea but that was like declared and paid prior to anyone knowing the existence of COVID-19? I cannot imagine them paying a dividend now as they are raising new capital.

I received 22c per share in Aug 2019.

that seems to be for the previous FY

 

[yiron]

I wish there was a way to directly swop my MCB rights for the shares rights technically can sell the former and buy the latter on exchange, but have to incur fees and bid ask...

 

[edwinttt1978]

Boy. Aren’t we excited about SIA’s pending results in 10 days’ time?

——
Singapore Airlines Limited (“SIA”) will be announcing its full year financial results for the year ended 31 March 2020 on Thursday, 14 May 2020, after trading hours.

https://links.sgx.com/FileOpen/2019...ouncement.ashx?App=Announcement&FileID=607468

 

[edwinttt1978]

yea but that was like declared and paid prior to anyone knowing the existence of COVID-19? I cannot imagine them paying a dividend now as they are raising new capital.


that seems to be for the previous FY

In happier times, 14 February 2020, when COVID-19 was still in its “infancy”, SIA delivered well for 3Q.

https://links.sgx.com/FileOpen/nr-q3fy1920.ashx?App=Announcement&FileID=596572

Dividend payouts are usually twice a year in July/Aug & Nov/Dec.

 

[reddevil0728]

In happier times, 14 February 2020, when COVID-19 was still in its “infancy”, SIA delivered well for 3Q.

https://links.sgx.com/FileOpen/nr-q3fy1920.ashx?App=Announcement&FileID=596572

Dividend payouts are usually twice a year in July/Aug & Nov/Dec.

erm ok. so you are suggesting that they will still declare a final dividend?

 

[edwinttt1978]

We cannot believe entirely in reports.

In its Q3 report, it was mentioned that SIA Group well-positioned to weather current challenges posed by COVID-19 outbreak.

The tiny virus was so tiny nobody gave it a damn.

 

[reddevil0728]

We cannot believe entirely in reports.

In its Q3 report, it was mentioned that SIA Group well-positioned to weather current challenges posed by COVID-19 outbreak.

The tiny virus was so tiny nobody gave it a damn.

Yea things change...

 

[edwinttt1978]

erm ok. so you are suggesting that they will still declare a final dividend?

Final dividend? Haha. They must be out of their minds if they do that.

 

[dumbothecute]

My broker told me I can only buy the rights from 13/5 - 21/5

And I can only sell the rights from 8/6 onwards

MCB can only be sold 10 yrs later

But you are saying that we can start selling rights and MCB from 13/5 onwards till 21/5? Please correct me if I am wrong.

I don't want to miss the date

If by trading you mean selling away the rights and/or MCBs that you don’t want, or buying such, the commencement date is Wednesday, 13 May 2020 from 9.00 a.m and the last date of such trading is Thursday, 21 May 2020 at 5.00 p.m.

 

[arctician]

One man’s inactivity is another’s gain.
So higher chances of getting excess for those who are wide awake at the expense of those sleeping throughout the entire exercise.

well said. Its definitely possible because i did it for 3 right issues over last 10 years..dbs, capitalchina retail reit and croesus reit.

For DBS and Croesus i only got less than 10%, for CapR i got allocated in full. The difference was last time the right shares offered were lower than mother shares, but for SIA is 3:2, so not sure if this will affect allocation.

Also i notice my allocation was higher when i use custodian like DBS or SCB, maybe because they are a majority shareholder

The MCB is too complicated for me, not that i have alot to sell anyway with 100-200 shares.

 

[yoyokid]

We cannot believe entirely in reports.
In its Q3 report, it was mentioned that SIA Group well-positioned to weather current challenges posed by COVID-19 outbreak.
The tiny virus was so tiny nobody gave it a damn.

No one believed that this miniscule 'si-ginna virus' can ride moisture in the humidity...

.. so few gave two hoots abardit, thus go on vacations and crowded events and places... Lol...