General S-REITs Discussion Thread

[mjboon]

AIMS AMP REIT Right Issue

DW, what's your view on the AACI rights issue?

 

[lzydata]

Yes, the managers have not indicated any specific acquisition opportunity, so for now the money is just to reduce gearing.

Also worth noting, it is a renounceable rights issue, so if any unitholder doesn't want to participate, you can at least get some kopi money

 

[mjboon]

Yes, the managers have not indicated any specific acquisition opportunity, so for now the money is just to reduce gearing.

Also worth noting, it is a renounceable rights issue, so if any unitholder doesn't want to participate, you can at least get some kopi money

7 for 40 rights issue, quite easy to get odd lot? So need to tikam for excess rights ...

 

[Mecisteus]

thats quite an "out of this world" ratio.

 

[wahkao3]

40 for 7 rights issue, quite easy to get odd lot? How to deal with this?

** First time in life dealing with rights issue ...

lol just sell your shares
right issues sucks

 

[lzydata]

40 for 7 rights issue, quite easy to get odd lot? How to deal with this?

** First time in life dealing with rights issue ...

It's 7 for 40 lah.

 

[mjboon]

It's 7 for 40 lah.

OOOPS, my bad ...

 

[aceirus]

Yes, the managers have not indicated any specific acquisition opportunity, so for now the money is just to reduce gearing.

Also worth noting, it is a renounceable rights issue, so if any unitholder doesn't want to participate, you can at least get some kopi money

Their slides mentioned that 80% of proceeds will be used for AEI on existing portfolio.

I am new to this "Rights Issue" thing so pardon me. Do you mean existing shareholders can choose to sell this Rights entitlement if they are not interested in buying the Rights units? Meaning can still get cash by not participating?

 

[lzydata]

Their slides mentioned that 80% of proceeds will be used for AEI on existing portfolio.

I am new to this "Rights Issue" thing so pardon me. Do you mean existing shareholders can choose to sell this Rights entitlement if they are not interested in buying the Rights units? Meaning can still get cash by not participating?

For this particular renounceable rights issue, yes, you can sell the rights entitlement to somebody who does want to subscribe. If it is a non-renounceable rights issue, sometimes called a preferential offering, then shareholders can choose to buy new units at that price, but they cannot sell the entitlement to do it.

If you look at the timetable in the document (either find the PDF in SGX announcements, or wait for the paper copy be sent to you), rights entitlements will be traded from 27 Feb to 7 Mar. Acceptance of rights entitlements is up to 13 Mar.

We even know what price the rights entitlements should trade at, roughly. The theoretical ex-rights price (TERP) is $1.365 and the rights unit price is $1.08, which means the rights should trade at around 28.5c.

 

[aceirus]

For this particular renounceable rights issue, yes, you can sell the rights entitlement to somebody who does want to subscribe. If it is a non-renounceable rights issue, sometimes called a preferential offering, then shareholders can choose to buy new units at that price, but they cannot sell the entitlement to do it.

If you look at the timetable in the document (either find the PDF in SGX announcements, or wait for the paper copy be sent to you), rights entitlements will be traded from 27 Feb to 7 Mar. Acceptance of rights entitlements is up to 13 Mar.

We even know what price the rights entitlements should trade at, roughly. The theoretical ex-rights price (TERP) is $1.365 and the rights unit price is $1.08, which means the rights should trade at around 28.5c.

Thanks for the explanation Izydata! But i wonder if the shareholders did nothing, will the rights be traded automatically on our behalf?

Looking forward to 27 Feb to 7 Mar

 

[Milo-Dino]

Thanks for the explanation Izydata! But i wonder if the shareholders did nothing, will the rights be traded automatically on our behalf?

Looking forward to 27 Feb to 7 Mar

If you did nothing and did not pay the $1.08 per share, your rights will lapse and be given to those who want excess
As a whole, your holdings will be diluted due to the increased share float.

Thus, dividends per share is expected to decrease

 

[supermanqwd]

Hi all, so what if i have 1000 shares, what are my rights and what should i do?

 

[Yorixz]

Hi all, so what if i have 1000 shares, what are my rights and what should i do?

U would be allocated 175 right shares which u can sell. Right shares most likely trade in the range $0.23 to $0.30. If u sell still can get $40 kopi money at least. Or u can wait for rights share to finish trading and apply for 825 excess rights on top of ur allocated to have an extra lot of Aims amp at $1.08

Alternatively, sell off ur 1 lot to save the trouble

 

[aceirus]

U would be allocated 175 right shares which u can sell. Right shares most likely trade in the range $0.23 to $0.30. If u sell still can get $40 kopi money at least. Or u can wait for rights share to finish trading and apply for 825 excess rights on top of ur allocated to have an extra lot of Aims amp at $1.08

Alternatively, sell off ur 1 lot to save the trouble

Sorry still have a question. Pardon me

So let's say I hold 1000 units. According to the 7:40 ratio, i am entitled to 175 rights shares units at $1.08 each. But I can still apply for more rights shares at this discounted price of $1.08? then wouldn't the ratio be invalid? And if i can still apply for excess, is there a limit?
Their slides didnt provide much details

 

[anfielder]

Sorry still have a question. Pardon me

So let's say I hold 1000 units. According to the 7:40 ratio, i am entitled to 175 rights shares units at $1.08 each. But I can still apply for more rights shares at this discounted price of $1.08? then wouldn't the ratio be invalid? And if i can still apply for excess, is there a limit?
Their slides didnt provide much details

175 rights shares is your entitlement based on your holdings. i.e. reserved for you.

Excess rights shares are subject to availability. You can apply as much as you want but you may not necessarily get it.

All this stuff will be in the offer document that will be sent to you.

 

[aceirus]

175 rights shares is your entitlement based on your holdings. i.e. reserved for you.

Excess rights shares are subject to availability. You can apply as much as you want but you may not necessarily get it.

All this stuff will be in the offer document that will be sent to you.

Thanks. But I prefer asking the intelligent ppl here in forum first rather than wait and read their offer documents as i feel it tends to be full of legal/financial jargons which makes understanding a pain...

I did some more research in the meantime and came across an interesting blog detailing how to maximise your position in AIMS with this Rights situation. There is this talk about odd lot which brings me to my next question: will investors usually get the odd lot allocation if they applied for the excess right units, in order to make a nice number of round lot?

 

[anfielder]

Thanks. But I prefer asking the intelligent ppl here in forum first rather than wait and read their offer documents as i feel it tends to be full of legal/financial jargons which makes understanding a pain...

I did some more research in the meantime and came across an interesting blog detailing how to maximise your position in AIMS with this Rights situation. There is this talk about odd lot which brings me to my next question: will investors usually get the odd lot allocation if they applied for the excess right units, in order to make a nice number of round lot?

Usually, but not always. I can only remember one time when I ended up with odd lots after rights issue.

In the past I have also applied for more excess rights (on top of those needed to round up to a whole lot) and gotten some. e.g. if I need xxx shares to round up, I apply for 5xxx excess rights and get 2xxx.

 

[lawtjw1985]

if i am using standard chartered online trading, will they be sending me the offer letter or i have to call them to get the letter?

 

[Hunter_X_Hunter]

they will send you the letter and call you

if i am using standard chartered online trading, will they be sending me the offer letter or i have to call them to get the letter?

 

[Sinkie]

SINGAPORE] Singapore's Temasek Holdings is seeking to sell its US$3.1 billion stake in Thai telecom company Shin Corp, according to people familiar with the matter, and has approached its SingTel unit as a possible buyer.

Temasek, which owns 41.6 per cent of Shin Corp through a subsidiary, held talks with Singapore Telecommunications Co, as SingTel is formally known, late last year, but those discussions have since stalled, said the people, who declined to be identified as the information is not public.

Temasek owns a majority stake in SingTel.

The ongoing political unrest in Thailand was among the reasons the discussions were put on hold, the people said.