The Singapore Airlines (SIA) (SGX:C6L) rights issue is a complicated one and I bet most shareholders don’t know what is going on.
I always believe that financial products are not shampoos and education is the only way to bridge the knowledge gap.
I took the liberty to record a walkthrough of the rights issue document and highlight the salient points for SIA shareholders to take note of.
If you are not a video person, you can read the following main points accompanied with some explanations.
SIA is offering 2 different rights issues to raise money.
- Rights shares
- Rights Mandatory Convertible Bonds (MCBs)
Rights Shares
Rights Shares Issue: SIA is issuing more shares to raise money. Only shareholders will receive the rights to buy more shares. The cutoff date for the shareholder list is on 5 May 2020, 5pm. Thereafter, you won’t be able to receive the rights shares even if you buy SIA shares. For every 2 shares you have, you will get 3 rights shares. You don’t need to pay for the rights. They would be automatically deposited into your CDP or custodian accounts.
Renounceable rights: The rights shares are tradable on SGX. You can buy and sell them like a normal stock. If you don’t want to exercise the rights, you should sell them off. If you want to buy more shares you can also buy more rights and exercise them later. The rights shares will start trading from 13 May 2020, 9am till 21 May 2020, 5pm. The name of the rights shares will be “SIA R” with the symbol “LRDR”.
Issue Price at $3: This means that you need to pay $3 per rights share in order to convert the rights into shares. The exercise deadline is on 28 May 2020, 5pm. If you hold the shares in a custodian account, your broker may set a deadline earlier than 28 May. So take note of the timing. You have to pay for the rights via ATM if you hold the rights in CDP and transfer the money to your brokerage account if the rights are held under custody.
Theoretical Ex-rights Price (TERP) of S$4.40: SIA share price was around $6+ before the rights shares issue. As the new shares are issued at S$3, you can expect SIA share price to trade lower to around S$4.40 after the rights are issued. But the market may not trade according to this theoretical price.
Rights MCBs
Rights MCBs Issue: Besides the rights shares issue, SIA is also issuing rights MCBs to raise more cash. I suspect the reason for issuing MCBs is because there would be too much dilution if it is a pure rights shares issue and SIA share price will have to trade much lower. Thus to be clear, these are bonds and not shares.
Only shareholders will receive the rights to buy these bonds. The cutoff date for the shareholder list is on 5 May 2020, 5pm. Thereafter, you won’t be able to receive the rights MCBs even if you buy SIA shares. You will receive 295 rights MCBs for every 100 SIA shares you own. You don’t need to pay for the rights. They would be automatically deposited into your CDP or custodian accounts.
Renounceable rights: The rights MCBs are tradable on SGX. You can buy and sell like them like a normal stock. If you don’t want to exercise the rights, you should sell them off. If you want to buy more bonds you can also buy more rights and exercise them later. The rights MCBs will start trading from 13 May 2020, 9am till 21 May 2020, 5pm. The name of the rights MCBs will be “SIA MCB R” with the symbol “GANR”.
Issue Price at $1: This means that you need to pay $1 per rights MCB in order to convert the rights into bonds. The exercise deadline is on 28 May 2020, 5pm. If you hold the shares in a custodian account, your broker may set a deadline earlier than 28 May. So take note of the timing. You have to pay for the rights via ATM if you hold the rights in CDP and transfer the money to your brokerage account if the rights are held under custody.
Zero-coupon: The MCBs are zero-coupon bonds which means you will not receive interest payments. Instead, you will receive a maturity amount that is higher than the principal you have put in. The maturity amount is equivalent to S$1,806.11 based on $1,000 principal. Or every $1 you put in, you get $1.81 at the end of 10 years.
Mandatory Conversion: As the name emphasised mandatory conversion, this means that the bonds will be converted to SIA shares upon maturity. There will be no cash paid to you.
Callable: The MCBs are also redeemable by SIA before maturity. They can have the option to redeem once every 6 months. Your yield will range between 4% and 6% depending on the year of redemption. The closer to the maturity, the higher the yield.
SIA Rights Issues FAQ
Q: How soon will I see the rights in my CDP / custodian account?
Not sure. But definitely before 13 May 2020 because the rights will start trading.
Q: What prices should the rights shares and rights MCBs trade at?
Price of the Rights Shares should trade close to SIA share price – $3.
Price of the Rights MCBs should trade close to $0.
Q: I will have odd lots of Rights Shares and Rights MCBs, how do I sell them?
There are two more counters, SIA R1 (symbol:HTFR) and SIA MCB R1 (symbol:8YJR), where you can sell your odd lots. Ask your broker if you can amalgamate the orders for the R and R1 so that you only pay commission once.
Q: If my SIA shares are held under CPFIS, must I buy the Rights & MCBs using my CPF fund? If I decided to sell the Rights, will the proceeds go back to CPF or cash?
Yes, you can use CPF to fund the rights purchase, provided your CPF limit allows.
If you sell the rights, the monies will go back to your CPF.
Q: I have SIA shares which I have bought using cash, would I be able to exercise them with CPFIS instead of cash?
No. You have to use cash.
Q: I have SIA shares in my SRS account, what do I need to do?
Your agent bank which holds your shares in custody should inform you about your rights shares and MCBs. You have to follow their instructions to exercise them. Otherwise, you should sell the rights.
Q: How are our shares diluted if we don’t subscribe to the rights shares?
Your % ownership of SIA will reduce. Assuming you have 1m shares. And you didn’t buy more but the number of shares will increase anyway. So your % stake can drop from 0.08% to 0.03%.
Q: If i do not own any SIA share can i buy the rights shares?And how do these rights shares work after I buy them?
Yes, you can buy the rights shares even if you do not have SIA shares. After you buy the rights shares, you still have to pay to convert the rights to shares. Don’t buy if you have no intention to exercise the rights, because the rights will expire.
Q: Do we need to pay $4.84 for a MCB in order to convert it to a SIA share in 10 years’ time?
No need to pay. They will just give you the shares in exchange for the bonds.
Conclusion
We hope that we have simplified these rights issues to you. You have to understand this and decide what to do if you are a shareholder. Either sell the rights or exercise them. Don’t let the rights expire worthless!
Hi
i bought SIA MCB R under Platform POEM and the price have since dropped to 0.001. May you advise what will be the implications ?
Either you pay to convert them to MCBs or they will expire worthless. I think it is hard to sell even at 0.001 because there’s no demand
Does anyone believe the oversubscribing for the right MCB would be an option? Furthemore if i buy 10.000 Rights MCB do i then have to use them all?
My issues is that i have an minimum order on Saxobank, thus have to buy 39.000 at 0,01 despite not planning to us them all.
you can buy more and not exercise them all. No issue with that. i know what you mean. the commission you pay is the same for 10k or 39k rights MCBs.
Hi Alvin,
I received 1500 SIA rights. If I intend to subscribe and pay for it, I would just let the rights to be lapsed on 21 May 2020 and to pay $4500 between 22 to 28 May 2020 via ATM. No any other action is required during the period from 22 to 28 May as the rights will be secured?
Thereafter, the shares will be merged with the ordinary shares to become 2500 SIA shares?
you can subscribe and pay now. no need to wait until 21 may.
yes, the shares will be the same as your current Sia shares after you paid for the conversion.
Hi Alvin,
Appreciate your help to answer these 2 questions if you know. Thanks.
1) For all the unsubscribed SIA R and MCB R, will Temasek have to buy them at market value before subscribing to them, or do they just scoop them at $3 per SIA share and $1 per MCB?
2) In 10 years assuming SIA does not redeem the MCBs prematurely, those holding MCB will get SIA shares based on the conversion rate of $4.84 per share. What is the source of these new shares? Will they likely cause further dilution in the market 10 years from now?
1) $3 and $1.
2) they will just create new shares. means number of shares increase. so there will be dilution again
Hi Alvin,
I hold 500 shares with SIA and entitled to 750 R shares. I have been trying to sell over online bank trading account but i keep getting rejected with the reason: ”You have insufficient buy holdings for this counter.” I have checked that i have sufficient moolahs in my trading account. Any idea why is that so? Thanks!
are you selling or buying?
I saw that I have rights in my CDP account. But I can’t find it in my broker account. Will I still be able to trade it via broker platform? Thanks!
yes you can trade them. it wont appear in your brokerage
Hi Aivin, just noted there is a SIA R and SIA R1, what is the difference between SIA R and SIA R1? Thanks
R1 is for odd lots – less than 100 shares
Hi Alvin,
I bought SIA using CPF via UOB on poems in Apr.
I submitted the ordinary rights and MCB but was rejected for MCB application.
UOB says we are unable to use CPF for MCB purchase. Is this true? I have sufficient money in my CPF and I only apply for 300 MCB worth.
They told me to use Cash or UOB debiting account only for MCB.
UOB is your agent bank for your CPFIS? If yes, you have to check with them again. They should be holding the MCBs.
Hi Alvin,
From a liquidity viewpoint, can I sell my MCB rights anytime after I subscribed to it or do I have to wait till they are being redeemed? If not, then does it make more sense to subscribe for the rights share and Not the MCB rights, since I can at least sell the rights share like anytime?
you cant sell your rights after you have subscribed to them. The rights will be converted to SIA shares or MCBs
Actually I meant if I I subscribe to the rights MCB, does it mean the funds will be locked up till maturity? Seems like there may not be a market to sell if I need the funds, is that right?
You can sell the MCBs as they will trade in the market. But you are right. There might be no liquidity – no buyers.
Hi..
Thanks for sharing.
I have subscribed online for SIA Rights Share issue thru SIA website and paid Paynow on the same day.
May I know when the Rights be converted to share and deposited to my CDP?
should be within these few days
hi Alvin
exercise rights share or rights MCB… which is better? or should exercise both to balance out losses?
Personally i dont like the mcb because there’s no interest paid and have to wait for 10 years to get the shares.
Hi Alvin,
I have a question. If i buy the rights from open market at $0.50 for 1000 rights =$500. Then i need to exercise the 1000 rights at $3 per rights so it sum up to $3000 + $500 = $3500 i have to pay in total exclude brokerage fee?
Thanks.
yes.
Hi Alvin,
I bought 3000 SIA shares on 12 May 2020
1) Therefore, am I right to say I will not receive any of the 4500 rights?
2) But can I still apply the Rights Share from SIA website?
3) In addition, since I am holding on to SIA shares now, does it imply that I can make any number (or is there a limit) of rights purchase from SIA R?
Thereafter, for every rights I purchase, I have to make another $3 payment on top of each rights?
4) Can non-SIA share holders purchase rights from SIA R?
1) no rights
2) Yes. But it depends on whether you are allocated. It is not confirmed. Whereas you buy the rights from the open market and convert them would be more certain.
3) Yes and yes
4) Yes
Thanks Alvin!
May I clarify the following as well?
I understand that there are excess rights that can be subscribe?
May I know where can I subscribe them?
Are they $3/rights as well?
Can non-SIA share holder purchase these excess?
What is the difference between SIA R and SIA R1 in the perspective of retail investor like myself?
I can buy from either and the cost is still the same right?
TIA!
You can apply online or via the ATM for the excess rights. You have to pay for them first. If you dont get the excess rights then they will refund you.
only SIA shareholders can apply for excess rights. non shareholders have to buy the rights from the open market.
R is for full lots of 100 rights shares. R1 is odd lots of less than 100 rights shares.
Thanks alot for the help.
Really appreciate it. 🙂
Hi Alvin, thanks for setting up this forum.
Why do you think Rights are trading at a discount to main shares despite Temasek underwriting balance? i.e. at $0.45, implying $3.45 vs main share at $3.60 (>4% discount). Does this mean that right holders are selling their rights to reduce overall investment outlay even though the TERP is lower if one exercises the rights he got for free.
I believe a discount is due to more shareholders wanting to sell their rights, adding pressure to the rights shares prices.
Hi Alvin,
Still worth to buy mcb ? If i will to buy 15k of mcb due to 50 lots of shares that i am holding. Then 10 years later, it will only be 15×1811=27k plus divided 4.84. The shares will about 5500 shares. If shares price at $9 in 10 years. Net profit is only 35k.
Mathematically correct. But it is still a bet on the eventual share price in 10 years’ time. And SIA may also redeem MCBs before maturity.
Hi Alvin,
I am not a SIA shareholder, but would like to buy the rights to subscribe. Can I to apply for the excess rights shares?
You can either buy the rights from the market and exercise them or apply for excess. The latter is dependent on allotment though.
Hi Alvin, I have bought the rights @ $3 through ATM a couple of days back. Do you know when this will be reflected in SGX website as my holdings? SGX is still showing the SIA R shares when I checked today, that should be zero already right?
The conversion is not done yet. Wait until early Jun.
Hi Alvin,
I own only 890 ordinary shares since decades ago and now considering buying the only the SIA R of 1,335 x $3= $4,005. But when you mention about “shares will be diluted if don’t subscribe to the Rights”, will this dilution affect my ordinary shares? I do not intend to buy the MCB.
Appreciate your help as I am not familiar with stocks… Thank you in advance!
Your ownership percentage of SIA will reduce.
Hi Alvin, thank you for all your explanations.
1.) How can I apply for excess rights if I only just purchased renounceable rights from the market?
2.) If I were to apply via the SIA website, I would be required to make a payment for rights which I have already purchased – How do I specify I just want to subscribe for excess allocation?
3.) How and when will I be informed if I get allocated the excess rights?
Thanks in advance
1) My understanding is that only a shareholder can apply for excess rights. But no harm trying!
2 & 3) I think u shd be able to indicate the number of rights you want to apply for, which is higher than what you were allocated. Then pay for it. If unsuccessful they will refund you.
Thanks Alvin. You are correct, I checked with my banker who confirmed that oversubscription option is only for existing shareholders prior to record date, so those who purchased rights in open market cannot apply for excess.
Hi Alvin
I’m quite confused about
1)the Rights trading day 13-21May
2)the commencement of Rights trading day 8 June
3)What is the difference for these two timetable ?
Looking forward for your guidance
the rights will stop trading on 21 May.
The additional shares from this rights issue will start add to the SIA share pool and start trading on 8 Jun.
Morning Alvin
1)So on 8 June rights and mother share will merge and start trading as common shares correct ?
2)will this impact further dilution and drag down the share price ?
Thanks for guidance
1) yes. early jun. cant rem the exact date.
2) no. already accounted. but of course market forces can still drag the prices down if most are pessimistic.
If I paynow early to convert my rights to shares , would the shares be creditted in my account earlier ?
OR all credit only on Jun 8 .
credit in jun
Hi Alvin
Does it mean from 8 june SIA shared pool stock price may drop since more shares are adding on?
Thanks
the share price have already adjusted for the additional shares. But it doesnt mean it cannot drop further because market forces can still move the share price.
Hi Alvin,
Suppose i bought odd lots (SIA R1). And when it comes out on my SGX portal (without a broker). What should i do the next? Do i convert it to SIA shares?
I should ensure the SIA R1 price is higher than the SIA price correct.
Pardon me as this is confusing for me.
Yes you have to convert to shares else the rights will be given to someone else and you get nothing.
Hi Alvin
If I have bought the SIA R but do not want to pay $3 per stock, then the money that used to buy the SIA R will considered burnt? Will not have any refund or sort?
Thanks
There’s no refund.
Hi Alvin,
Total Number of Rights Shares Applied = Provisionally Allotted + Excess Rights Shares.
What is “Excess Rights Shares”?
How to get “Excess Rights Shares” and at what price?
Many thanks!
Rene
You can apply for more rights, above what you have been allocated. It means that someone didn’t exercise the rights and you can takeover these rights shares. You would have to convert at $3 per right share.
Thanks for the insightful article. Do you know if I can paynow by paying for the rights subscription online on-behalf of my parents entitled SIA rights?
Assuming all I can input their CDP numbers and number of rights to exercise, get the reference number after applying online and use my bank account paynow and pay.
I am not sure if it works. Because this is the first time rights application could be done online. it has always been via ATM.
I just called the rights hotline. They said its possible. Can find detailed instructions in the thick book E4.
Need to provide a ref no for them to match payment.
Hi Alvin
I hv made atm payment $2,250 abt 3 days back for my entitled 750 rights share.
When will it be converted and added to my current 500 shares?
Tks a lot
After 28 May 2020. Should be allocated early jun
Hi!
1) Understand that it is possible that the mcb be redemned every 6 months up till the end of the 10th year. What wiill be the impact to the share price should they are being redemned earlier than the 10th year? Should I be concerned about this if I am looking to buy new mother share now for long term investing?
2) With the rights issued at $3 and temasek taking up the balance at $3, on a personal opinion note, do you think that will provide a strong price support around $3 range if not many will lose a lot of money?
3) Based on a personal opinion, what do you think should be the fair value of SIA mother share now?
1) the yield will be lower. 10 years is 6% p.a. 5 years is 4% p.a. and you get cash and not shares if redeemed early.
2) hard to say. market forces.
3) personally I wouldn’t invest because it is a very difficult business and now it is rife with uncertainties.
Hi Alvin,
I have 2 lots of SIA shares and I have bought and paid for the 3 lots of SIA rights. Can I take these 5 lots to sell it at the current price of $3.57 (closing price on 20/5)? Or is the rights trading at a different price? Thanks
The rights have not been converted to shares yet. So you cannot sell 5 lots of SIA now. You can only sell 2 lots.
Hi Alvin,
I am issued eg. 1500 R shares bcos I am a shareholder. Can I sell them? If yes, deadline is 28may?
If I buy them to convert. I only pay $3 per share even if the sia share price is $3.90 now?
Thanks
Sell by 21 May 2020. That’s today.
Yes. you can also consider converting at $3 per share.
Hi Alvin.
After reading up your presentation slides that your posted recently as well as your online Q&A posted from the readers, i am indeed impressed that you share your valuable expertise, contribution and knowledge that we gained from you.
I have a Q to seek your opinion for the MCB R which i am allotted abt 10K+ base on the SIA main share allocation lots. However, I am still `puzzling’ whether to subscribe the MB R and deadline is on 22 May with my investment bank. I notice that your earlier replied to one of the reader posted on 19 May which your personally opinion is not “very keen” on MCB R subscription in view of there is no interest paid and have to wait for 10 years to get the shares.
Hence, I would like to seek your one more step of advise whether should I subscribe the MCB R ? since I have already taken up the right shares (SIA R) seem more `profitable” in long run when Covid -19 is break away.
Hence, appreciate your reply soonest and thank you once again. Regards
Maybe this question can help you make a decision better: Do you have investment ideas than SIA MCBs? If yes then skip the MCBs. If no, then buy the MCBs.
Hi, Alvin
1. If I do not wish to buy the MCBs, will it dilute my shareholdings? Will be buying just the share rights.
2. Also, do I need to do anything, or just don’t subscribe via ATM and let them expire?
3. For the share rights, after paying for them at $3 a piece at ATM, no need to do further action to convert? Just wait for early June and the conversion will be reflected on my account? Thanks!
1) wont dilute now but in 10 years times yes.
2) if you dont want to subscribe then do nothing.
3) Yes.
Hi Alvin,
I have 5000 SIA shares bought using CPF & 3500 SIA shares bought using cash many months ago.
If I do nothing, take no action, as I want to hold them as long as possible, what would I see in these accounts?
your shares will still be there.
Hello Alvin,
I am currently ‘stuck’ in the U.S. My sister opened my mail 2 days back & read that I am entitled to 4200 SIA Rights issue. However, when I logged into the SIA website, it said that they’ve “ detected that I am accessing the portal from an IP address that may render me a foreign shareholder & therefore ineligible to participate in the Rights issue & cannot proceed beyond this point”.
1) I called DBS bank & Customer Service told me that as I bought my shares using cash, I am unable to get my assigned Broker to assist to buy the Rights. Also, my DBS online have lost the ability to give me an SMS OTP & they could not resolve the problem. Was told to call CDP.
2) I called CDP & was advised to Courier the SIA issued form with a Banker’s draft by 28 May, but I do not have the original form on me.
3) What do I do now please? I fear that the courier may not arrive on time due the reduced flights out of the U.S. – I am in Utah.
Please advice. Thanks.
have you tried talking to SIA?
SIA has set up a helpline to answer questions relating to the Rights Issue, including any specific administrative questions.
The helpline +65 6878 1375 is open from Monday to Friday (excluding public holidays), and available from 9.00 a.m. to 5.00 p.m.
Hi Alvin i got 3 sia share.sia give 8850 mcb r what i need to know can i buy only 2 mcb r through atm.
dont understand your question.
What will happen to my SIA R share if I don’t sent them now. After 21 may can we still sell them in open market?
after 21 May, you cant sell them anymore.
Hi Alvin, In total I am holding 10,000 SIA MCB rights. No point for me to sell the rights as my cost will be higher than the proceeds. Is it wise to exercise it and wait for 10 years to be converted in SIA shares. In between there is loss in opportunity cost. I will need some advice from you weather it is a good investment on SIA to see my money later converted back at $4.84. Look forward to hear from you.
Dont subscribe just because you couldn’t sell the rights MCBs.
I would revert the question to you: Do you have better investment options other than MCBs? if yes, then you should invest elsewhere. If no, then can subscribe the MCBs.
Hi Alvin
Great article and video, kudos!
For those thinking of subscribing to the MCB, what do you think will happen in the event SIA gets privatised or goes bankrupt? Is there a chance that the MCBs may not be honored and possibly written off?
Thank you once again.
Anything is possible.
secured lenders will get paid first then unsecured lenders (MCBs in this case). Lastly shareholders.
Depends on how much money can they get to pay off everyone.
Hi Mr Alvin,
Can I check with you? If I am not holding the SIA shares, but I have bought the rights of SIA from open market last week, beside paying to convert them to shares, can i apply excess rights ?
I think you can’t apply for excess rights if you are not a shareholder. But no harm trying! The most they refund you the cash.
Hi Alvin,
Can I buy the rights shares ($3) via SIA website even though I am not a shareholder? And what do I need to do after purchasing those rights shares?
Alvin, I bought 1000 SIA shares few months back using CPF OA. I got hard copy letter of 3000 Rights shares with a last date of 22 May return date, signed. Unfortunately, I opened the letter box today only. Does it means that I cannot do any thing now and accept the loss..
You can still subscribe to the rights if your agent bank still accept. but you need to use your CPF monies to pay.
CDP account is in a US person name. If he subscribes (some way) to this rights and gets the shares credited to the CDP, what are the implications?
The person would see more shares in the CDP account.
Hi Alvin,
If i exercised the Rights Share before 28 May be paying. Sub, i just wait for it to covert to mother shares before i can sell right?
yes
Hi Alvin,
Many thanks creating this forum. Can i just confirmed once the Rights share purchased before 28 May thereafter will wait for it to convert to mother shares before we can do any trading?
Thanks
yup. just wait for the shares to be credited after you have paid to convert them.
Hi,
what happens if I oversubscribed for shares (eg. 2950) when I only have (eg. 1500) share rights in my CDP?
Will the transaction be rejected? Or I will need to reapply?
You can be given the additional shares if there are others who gave them up. Minimally you will receive 1500 shares and the any overpayment will be refunded to you.
Hi Alvin,
Thanks for the reply; I’ve gotten 1500 + 800 (excess shares). When would the overpayment be usually refunded?
You should have already paid for them when you applied for excess shares.
Hi Alvin
I made the payment at ATM to apply the SIA rights share at S$ 3 / rights share.
What is the process to covert to share? Auto conversation or through my broker or any alternatives ?
Thank you and best regards
they will do the rest. you should see more SIA shares after they have credited to your account
sorry typo error
to read as “convertion” instead of “conversation”
Dear Alvin,
For the alloted rights shares & rights MCB, may I know can we just subscribe for the rights shares & forgo the rights MCB?
Someone told me must take up both, otherwise rights shares will not be accepted!
I called the SIA helpline but no one pick up.
I called DBS they said “should be” but not very sure as they just based on FAQ to answer my questions.
Hope you can enlighten me soon as application closed today.
Thanks & Best Regards.
you can subscribe the rights shares and forgo the rights MCB.
Hi, I have acquired the MCB 10K units @$1 per unit. Now that I already see the unit in my account but the value is still showing $0.001.
1) when will this $0.001 reflect $1 or market value?
2) can i trade the MCB after this?
Thank you
My view is the MCB is quite worthless. It’s upside is capped given the redemption option by the issuer to only 4% pa from Yr1 to 5, thereafter circa 5% pa …..while the downside is unlimited. No doubt if not redeemed, it is acrued @ 6% pa but due to mandatory conversion , you have to exchange the 1.80 principal value for shares of SIA at predetermined price of $4.80. What it means is if indeed if the share price goes beyond $4.80, due to redemption option exercisable semi annually by SIA, SIA will redeem and pay u only 4-5% pa . If SIA share price falls below that, SIA will not redeem and u will get a lower value paper at maturity. The upside of the MCB is capped while the mandatory conversion means u have unlimited downside
Hi Alvin
I have subscribed and made payment to the Rights Shares, and have forgo my MCB. However, my Rights Shares is indicated as “blocked” in my CDP account, while the MCB which I forgo is indicated as “free”. Why is this so ?
Thanks in advance.
You have to ask CDP or your broker.
Hi Alvin,
I applied for the rights via online website but got rejected as I keyed in my nric wrongly. Cdp no. Is correct. Sia refused to allote the shares to me. Is there any way I can seek help on this matter?
Thanks
I’m sorry. This is beyond me. You can try asking CDP
Hi Alvin,
I already have 1 lot of SIA share. I am entitlted to 1500units of this latest rights issue. I subscribe through ATM all 1500units on 21 May. When i checked my CDP acct today, my free is 0 and blocked is 1500, by Corporate Action. I have not trade any of them. I also did not receive my refund in my bank acct. Could you enlighten me on this?
it might be because the shares are not ready for trading yet. Give it a few more days.
Hi Alvin,
Thank you for your video. Very informative.
What will happen to SIA mother stock once rights are traded next week? The price would be lower or higher?
By right the share price has already adjusted for the excess shares. But of course, some shareholders may sell the excess shares when the new shares start trading, which may add some pressure to the share price, causing it to come down. Then again, if the market is bullish, the shares may be bought up by other optimistic investors. So it would be anyone’s guess.
Thanks Alvin.
Do you know when the right shares will start trading, I know sometimes next week but not sure the date. Thanks again!
started trading on 8 Jun 2020