CapitalCommercial Trust (CCT) recently announced a Rights Issue, becoming the third company related to Capitaland to do so.
This CCT Rights Issue will raise approximately S$828.3 million, with 1 Rights Unit being offered for every existing CCT Unit owned. The Rights Issue will allow Unitholders to subscribe for the new units at $0.59/unit. This is a discount of 60.9% to CCT’s pro forma NAV per Unit of S$1.51 after taking into account the effects of the Rights Issue and the latest valuation as at 22 May 2009.
Key dates are as follows:
First day of ex-rights trading : 3 June 2009
Despatch of offer document : 10 June 2009
Commencement of nil-paid Rights trading : 10 June 2009
Last date for trading of nil-paid Rights : 18 June 2009 at 5pm
Last date for acceptance and payment of Rights and Excess Rights Units : 24 June 2009 at 5pm (930pm for electronic)
Expected date of trading of Rights Units : 3 July 2009
36 comments
alice says:
June 2, 2009 at 3:49 pm (UTC 8)
hi lioninvestor,
just want to confirm – if today buy the mothershare, still entitle for rights?
aside, seems like this rights offering is not attractive as no one bother to ask. is there any downside if investing in REITs? I am new to investment, just keen to learn more …
thanks,
alice
lioninvestor says:
June 2, 2009 at 6:51 pm (UTC 8)
Hi Alice,
yes, today is the last day for Rights Entitlement.
One of the downside is a Rights Issue. lol
I will try to write about REITs in a future article.
alice says:
June 3, 2009 at 10:51 am (UTC 8)
thanks!
looking forward for your article on REITs soon.
Alvin says:
June 9, 2009 at 9:34 am (UTC 8)
Hi,
May I know how to apply for the rights issue and when is it available for application. I have the mother share and am entitled to the rights. I tried to use the ATM, but there is no CCT rights available on menu. Thank you.
lioninvestor says:
June 10, 2009 at 8:00 am (UTC 8)
Hi Alvin,
You probably can start applying from today.
You can refer to this comment for the atm procedure:
http://www.martinlee.sg/capitaland-rights-issue/#comment-10732
It will be similar.
Rake says:
June 10, 2009 at 1:32 pm (UTC 8)
Hi,
I am not vested currently in CCT. Am I still able to buy the rights
CapitalCommR and have it converted to the mothershare?
CapitalCommR is currently trading below the price of $0.59, thus is priced at a steeper discount than the rights offering.
This doesn’t seem right?
lioninvestor says:
June 10, 2009 at 11:35 pm (UTC 8)
Hi Rake,
The price is correct. $0.30plus+0.59=0.89plus, which is about the same price as the mother share.
In theory, buying the rights and converting them should cost the same as buying the mother share directly.
Coco says:
June 10, 2009 at 4:24 pm (UTC 8)
hi,
would like to enquire if i buy capitalcomm R, will i be able to sell off when it increase within the period of trading nil paid right? Thanks.
lioninvestor says:
June 10, 2009 at 11:34 pm (UTC 8)
Hi coco,
Yes, you may. Note that the period for trading is quite short.
Florence says:
June 11, 2009 at 11:44 pm (UTC 8)
Hi,
I have a really stupid question, is the ticker symbol of capitacommercial trust H7DR? And I am only intenting to sell the rights shares .. should I hold for a while and sell right before Jun 18, 5pm? Thanks for your advice.
Florence
lioninvestor says:
June 13, 2009 at 2:59 pm (UTC 8)
Hi Florence,
Are you referring to CCT or CCT rights?
Florence says:
June 14, 2009 at 8:42 am (UTC 8)
Hi lioninvestor,
I am referring to CCT rights. Thanks
lioninvestor says:
June 15, 2009 at 11:59 pm (UTC 8)
Hi Florence,
CapitaComm R
H7DR
vincent says:
June 12, 2009 at 10:30 pm (UTC 8)
Hi,
I tried applying for the rights today (at around 10pm) but it says service unavailable. I noticed on one of the screen it says it’s only available on mon-sat till 9:30 pm. I cant seem to find any mention of the 9:30pm DAILY cutoff in the documents sent. Am i missing something here? or we still cannot apply the rights via atm?
Thanks
lioninvestor says:
June 13, 2009 at 2:20 pm (UTC 8)
Hi Vincent,
The rights is already open for subscription but you have to do it before 930pm each day if you are doing it via atm.
lioninvestor says:
June 16, 2009 at 12:01 am (UTC 8)
Hi Vincent,
D-3, Clause 9
Baoqiang says:
June 13, 2009 at 6:16 pm (UTC 8)
Hi Lion,
I have sold all the mother shares during the ex-right date, entitle and received the 1:1 rights upon issue date, which i have sold all of the rights.
However i still receive the application form to apply for entitled/ excess rights, given that i have already sold my entitlement rights, can i still apply for excess rights this way since they are bonus profit if the mother shares do not drop below $0.59/shares.
Baoqiang
lioninvestor says:
June 13, 2009 at 11:21 pm (UTC 8)
Hi Baoqiang,
Yes, you may but there might not be too many excess to go around. Do keep me posted of how many you eventually get.
Baoqiang says:
June 13, 2009 at 11:35 pm (UTC 8)
Hi Lion,
Thanks for the advice, i will try my luck to apply for a couple of excess and let you know the outcome.
Baoqiang
tang says:
June 14, 2009 at 7:32 am (UTC 8)
I have some questions with regards to Capcomm rights issue here.
1. Just to double confirm, there isn’t a need to mail any letters if the payment is made through ATM right?
2. I do not really understand the meaning of nil-paid rights and do not understand who is able to buy/sell rights during the nil-paid rights period.
I currently have some Capcomm shares. I understand that the shares through this right exercise will only be reflected in early July. So my question is, how do i purchase excess rights (beyond what i’m entitled to) or how do i sell part of my rights?
lioninvestor says:
June 16, 2009 at 12:08 am (UTC 8)
Hi Tang,
1) No.
2) Nil-paid rights refers to the rights that allows you to buy CCT shares at $0.59. Anyone can buy them during their trading period. Those who own the CCT R can sell them. These will be the original CCT shareholders who hold the CCT shares over ex-rights date.
3) You can sell your rights via the CCT R counter. If you do not sell your rights, you need to act to pay $0.59/right to convert them to CCT shares.
You do not need to purchase excess rights. You pay $0.59/excess rights when you apply for them via the atm. How many you ultimately get depends on how many rights are left over and how many people are applying for the excess rights.
tang says:
June 14, 2009 at 7:35 am (UTC 8)
And, does purchasing excess rights the same as purchasing nil-paid rights?
Rake says:
June 16, 2009 at 10:52 am (UTC 8)
Hi,
If i buy the rights now, can i immediately convert it to mothershare via ATM?
Or will CPL send a letter to inform me about the subscribing?
lioninvestor says:
June 16, 2009 at 12:24 pm (UTC 8)
Hi Rake,
You can apply via the atm immediately but the new shares will only be given to you on 3rd July.
Indra says:
June 16, 2009 at 4:53 pm (UTC 8)
IF I buy nil paid rights today in the market, can I subscribe for them at the ATM. (before paying my broker or do they have to be fully paid for before subscription)
I will pay broker and they will be free by the closing date
lioninvestor says:
June 16, 2009 at 11:10 pm (UTC 8)
Hi Indra,
No issues as the allocation is all done when the rights issue is closed.
alice says:
July 2, 2009 at 5:17 pm (UTC 8)
“Expected date of trading of Rights Units : 3 July 2009″
hi… does anyone know when can check our cdp account for the excess rights application result?
thanks,
alice
noob says:
July 2, 2009 at 11:41 pm (UTC 8)
Like to know too..
it says “expected date of issue of rights units: 2 July”
But I still don’t see it in my CDP account.
lioninvestor says:
July 3, 2009 at 7:20 am (UTC 8)
Hi Alice,
If you have an online CDP account, you can check the status.
https://www1.cdp.com.sg/web33/scdcint/main/logon.do
Another way is to check how much money was refunded to you.
alice says:
July 3, 2009 at 11:11 am (UTC 8)
hi lion investor and noob,
saw the rights share in CDP account this morning. and got the refund this morning as well.
own 4 lot mothershare, got 1 lot excess rights out of 10 lots applied.
thanks,
alice
Kay says:
July 5, 2009 at 5:06 pm (UTC 8)
When do the rights expire?
lioninvestor says:
July 5, 2009 at 5:17 pm (UTC 8)
Hi Kay,
For CCT?
All the rights have already been allocated and converted to shares. Those who own the rights and did nothing would have lost their rights.
Kay says:
July 5, 2009 at 6:06 pm (UTC 8)
So $0.59 is for the shares not the rights?
thanks!
lioninvestor says:
July 5, 2009 at 9:07 pm (UTC 8)
Hi Kay,
$0.59 is for converting the given rights to shares.
guppy says:
August 17, 2009 at 6:21 pm (UTC 8)
Great to have found your site. It cleared up pretty much of my doubts. If not, I would have done nothing and lose my rights
Anyhow, I’m curious how the “nil paid” trading works. A person with the mother share is entitled to the rights and can sell it over the counter right? Is there anything this person need to do first to trade the rights? Does he pay anything to sell the rights?
lioninvestor says:
August 17, 2009 at 6:56 pm (UTC 8)
Hi guppy,
Just have to make sure you have the correct number of nil-paid rights in your CDP before selling them.
Normal brokerage fees apply when selling. This is done like selling a normal stock via the exchange.