A proposed NOL Rights Issue was announced this morning by NOL to raise approximately S$1.437 billion. Existing shareholders will be given the option to subscribe for 3 Rights Shares at $1.30 for every 4 existing shares that they own.
The Rights Issue is renounceable and based on yesterday’s price, the theoretical ex-Rights price is S$1.43 per share.
Temasek Holdings, having an interest in 67.43% in NOL’s shares, has agreed that it will subscribe and pay in full all the Rights Shares that the Temasek Entities are entitled to.
The underwriter for this issue is DBS and the indicative timetable for the NOL Rights Issue will be announced at a future date pending approval from SGX-ST.
56 comments
Allan says:
June 13, 2009 at 4:51 pm (UTC 8)
I don’t own any NOL share currently.
If I buy some NOL shares from the market on Monday (15-Jun), will I be qualified for the Rights offer @ $1.30/share ?
lioninvestor says:
June 13, 2009 at 11:15 pm (UTC 8)
Hi Allan,
Last day of buying is Tuesday to qualify for the NOL Rights.
Allan says:
June 14, 2009 at 12:22 pm (UTC 8)
Thanks.
But, where does one get this info ?
I scanned through the two NOL documents (ie the proposal and the presentation) several times and I did not come across such crucial info.
Allan
lioninvestor says:
June 18, 2009 at 12:50 am (UTC 8)
Hi Allan,
Look for their announcement dated 11 June.
Coco says:
June 16, 2009 at 9:12 am (UTC 8)
when is the right issue date? nil paid trading ? etc
lioninvestor says:
June 16, 2009 at 1:33 pm (UTC 8)
http://www.martinlee.sg/nol-rights-issue-dates/
cretu says:
June 17, 2009 at 10:14 am (UTC 8)
if i have only one lot (1,000) of nol share as of close of trading on tuesday (16 jun 09), tat means I have 750 shares of rights???
does it mean i can sell this 750 when trading starts on 24 jun 09???
is it then possible to trade only 750 shares on the market??? considering that volume are denoted by lot size, ie. 1,000 shares…
thanks alot!!!
lioninvestor says:
June 26, 2009 at 6:47 pm (UTC 8)
Hi Cretu,
There’s a counter NOL R 750 that allows you to sell the 750 rights.
cretu says:
June 18, 2009 at 3:02 pm (UTC 8)
dear,
wat does “BOOK CLOSURE DATE FOR RIGHTS ISSUE” (19 jun 09 for NOL means???
lioninvestor says:
June 18, 2009 at 11:59 pm (UTC 8)
Hi cretu,
the book closure date is read in conjunction of the ex-rights date. It is used to determine the cutoff date for entitled shareholders of the rights issue.
cretu says:
June 19, 2009 at 8:52 am (UTC 8)
hi lioninvestor, in this case, does that affect me if i am holding on to nol shares???
or is it just a procedural issue (or date) in conjunction with the ex-rights date?
thanks
lioninvestor says:
June 19, 2009 at 4:07 pm (UTC 8)
No issue for you if you have been holding it all these while. More for those who are buying/selling NOL shares during this period.
andrew says:
June 22, 2009 at 10:05 am (UTC 8)
Hi, regarding cretu’s question, what if i bought it after ex-rights and before the books closure date? As far as I understand, I will not be entitled to the rights.
So if there is a change, then there will be an announcement made?
lioninvestor says:
June 26, 2009 at 6:45 pm (UTC 8)
Hi Andrew,
No you won’t.
Best way is always to check your CDP account balance.
HL says:
June 26, 2009 at 11:26 am (UTC 8)
Hi lioninvestor,
I have 1500 NOL rights share. But I want to subscribe to another 500 shares to make it 2 lots, so as to trade in the open market. How and where can I do that?
Many thanks!
lioninvestor says:
June 26, 2009 at 6:44 pm (UTC 8)
Hi HL,
You can either buy another 500 rights from the open market so that you can subscribe for 1500+500 rights or apply for 500 excess rights.
HL says:
June 28, 2009 at 12:06 pm (UTC 8)
Thanks lioninvestor, I’ve 1 addition qn.
After paying for the rights and excess rights, when can I start selling these 2 lots of mother board shares? Is it 17 July 2009 (Friday)?
Appreciate your help!
ac says:
June 28, 2009 at 1:56 pm (UTC 8)
Hi lioninvestor,
I have 2250 NOL rights shares.
Can i subscribe the 2000 rights shares via ATM and sell the balance of 250 rights shares?
If yes, how and when i can sell the balance of 250 rights shares?
lioninvestor says:
June 29, 2009 at 7:22 pm (UTC 8)
Hi Ac,
There’s a counter NOL R 750 but it’s only for trading of 750 rights. Last day for selling this is 2nd July.
Another way is to take up all the 2250 rights and sell 250 NOL mother
share on the unit market.
Yet another way is to take up all the 2250 rights and try applying for 750 excess rights. Depending on how many excess you are allocated, you can then sell any odd lots on the unit market.
Prit says:
June 28, 2009 at 2:08 pm (UTC 8)
I have one lot (1000) of NOL shares bought at $1.78.
Will I benefit or lose from the rights issue and the pricing offered in the pricing issue.
lioninvestor says:
June 29, 2009 at 7:23 pm (UTC 8)
Hi Prit,
Given that the rights subscription price is less than the current trading price of NOL, you have to do something. Doing nothing will be detrimental to your position.
Either
1) subscribe and take up all your entitlement
2) sell your rights
3) Combination of 1 and 2.
Jean says:
July 2, 2009 at 3:02 pm (UTC 8)
Hi,
I just start trading not long ago so pls adv me on this. My rights is $1.30 per share. How to work out the NOL R & NOL R750? I am confused
lioninvestor says:
July 3, 2009 at 7:53 am (UTC 8)
Hi Jean,
how many lots of NOL do you have?
WSA says:
July 2, 2009 at 5:54 pm (UTC 8)
Dear Sir,
I bought 20k share of NOL R today (open market) before closing and noticed that today is the last day of trading the rights. I can sell it tomorrow because of last day.
Therefore, doest it meant I have to subscript all 20k and pay at $1.30? When is the last day of payment?
Pls advise.
Thanks
lioninvestor says:
July 3, 2009 at 7:35 am (UTC 8)
Hi WSA,
Yes, you can’t sell it already. You have until 8 July to subscribe to all your 20k shares at $1.30/share otherwise they will expire worthless.
However, one way is to check the buying-in market at 11am every day and see whether there are any short-sellers that need to buy back their trades that day. You can sell it to them in the buying-in market through your broker.
Important thing to note is that you can only do this after the shares are inside your CDP. So you won’t be able to do it these few days.
alice says:
July 3, 2009 at 11:15 am (UTC 8)
hi lioninvestor,
is short-selling allowed in singapore stock market?
thanks!
lioninvestor says:
July 3, 2009 at 11:18 am (UTC 8)
Hi Alice,
If you short sell and do not cover within the day, then…
http://www.martinlee.sg/hefty-penalties-for-naked-short-selling/
Qn says:
July 3, 2009 at 12:11 pm (UTC 8)
Hi lioninvestor,
I bought 40k @ 0.15 NOL R shares on an online acc without noticing that yesterday was the deadline but i’m not interested in subscribing it @ $1.3 per share. So does tat means tat my contract is now worthless even if pay up the contract payment? pls advice! thanks!
lioninvestor says:
July 4, 2009 at 12:09 am (UTC 8)
Hi Qn,
After you settle your contract payment, you will be left with 40k of NOL rights.
The rights will expire worthless if you don’t use it to subscribe for NOL shares at $1.30/share by 8 July 09.
Kelly says:
July 4, 2009 at 11:21 am (UTC 8)
Hi
I had brought 2000 NOL share. They send me a letter regarding the right issue AND I do not know what to do. I was provisionally allotted right issue of 1500. Do I have to pay for this right issue (1500)? What should I do with the form send to me? What is right issue? Is it given free to us or we had to pay for it?
Thanks & Regards,
Kelly
lioninvestor says:
July 4, 2009 at 11:16 pm (UTC 8)
Hi Kelly,
Please refer to this example that I did earlier for Capitaland.
http://www.martinlee.sg/capitaland-rights-issue/
As you can’t sell off your rights already, you will have to decide whether you want to pay $1.30/right to subscribe for your rights.
Essentially, you are paying $1.30/right to convert them to NOL shares.
Since NOL is currently trading at above 1.30, one option is to sell off 1500 NOL shares, and take up your rights allocation of 1500. This would be better than doing nothing.
You can also decide to apply for excess rights in addition to your allocated rights.
You have until Tuesday 8th July to do it.
A.H says:
July 4, 2009 at 5:12 pm (UTC 8)
Hi lioninvestor,
I’m pretty new to trading and I’m not too sure of how to exercise my rights shares. What are the ways that I can make payment for the rights shares?
I’ve been provisionally allotted 2250 rights shares and I’m wondering where or how can I sell off the 250 shares since to my knowledge trading is usually done in lots?
Thanks!
lioninvestor says:
July 4, 2009 at 11:10 pm (UTC 8)
Hi AH,
The easiest way would be to apply via the ATM machine. Steps are similar to this:
http://www.martinlee.sg/capitaland-rights-issue/#comment-10732
Alternatively, you can get a cashier’s order.
There is a unit market for all counters to sell single shares actually. Order placement is done by calling your broker.
Kelly says:
July 5, 2009 at 8:24 pm (UTC 8)
Hi lioninvestor,
Thanks for the earlier reply.
As I am new to right share, could you tell how to obtain faster info that the right issue was given to me? Now, the NOL right issue had closed.
I understand I can’t sell it. Do they send us letter that right share was given to us?I did not receive anything and did not sell it. How to check the closing date of sale of the right share ?What I receive is the conversion of right share to mother share.
Regards,
Kelly
lioninvestor says:
July 5, 2009 at 8:55 pm (UTC 8)
Hi Kelly,
You can check your CDP account for the NOL R shares.
The document that you receive should have all the information with key dates indicated.
You can also check everything under the SGX announcement for NOL.
http://www.sgx.com/wps/portal/marketplace/mp-en/listed_companies_info/company_announcements
Linda says:
July 6, 2009 at 4:26 pm (UTC 8)
Hi, I bought 2000 NOL shares @$1.50 on 30/6/09. Am I affected
by the rights issue? I am new to trading and will appreciate if you
can advise me what is the best option. Thank you.
lioninvestor says:
July 7, 2009 at 4:13 am (UTC 8)
Hi Linda,
As you bought the NOL shares on/after the ex-rights date, you are not involved in this rights exercise.
jieming says:
July 7, 2009 at 7:45 pm (UTC 8)
Hi,
Sorry, I am new to rights, hope you can answer a few of my enquiries.
I had bought rights from the open market through dbsvickers. May i know when i accpet the rights from DBS, do I key in under rights accpeted or excess PTS APPL? I understand that these is the 2 options. Therefore for rights bought at open market, which is the one to accept?
I bought 15K rights, so by accpeting it will be SGD 19500. I presume there will be no limit as compare to cash withdrawal or internet banking of 3K a day? Must I call DBS to increase my limit?
What is the price after 16th July when we offcially can trade?
Thanks,
Jieming
lioninvestor says:
July 8, 2009 at 12:52 am (UTC 8)
Hi Jieming,
For rights bought from the open market, you should key in under rights accepted.
Note that today is the LAST day for you to accept the rights.
Done at ATM machine so internet banking limits does not apply.
The price on 16th July is anyone’s guess….
Jieming says:
July 8, 2009 at 1:05 am (UTC 8)
Omg, I thought is tomorrow. I want to convert my rights. How? I spend 2k plus to buy the rights. What can I do now? Please help.
lioninvestor says:
July 8, 2009 at 9:10 am (UTC 8)
Hi Jieming,
Today as in 8th July (wednesday).
You have until 930pm today to raise the funds you need. If you really can’t do it, you will have to take up whatever amount you can afford…
Kelly says:
July 9, 2009 at 4:00 pm (UTC 8)
Hi Lioninvestor,
Could you advise what is the meaning for the following term:
1)nil paid right
2)splitting of rights
3)renunciation of right
Thanks in advance.
Regards,
Kelly
lioninvestor says:
July 14, 2009 at 10:47 pm (UTC 8)
Hi Kelly,
Nil-paid rights refers to the rights you are given, but have yet to pay money to convert them to the normal shares.
Renounce means give up your rights in favour of another person. Splitting allows you to accept part of your rights and renounce the rest.
Marc says:
July 14, 2009 at 3:35 pm (UTC 8)
HI,
I look at my CDP balance account after subscribing the NOL right issue and found this:-
NOL LTD BALANCE B/F 10,000
NOL R BALANCE B/F 7500
But found out that my current Holdings shows NOL LTD 10,000. Can I trade 17500 NOL shares
lioninvestor says:
July 14, 2009 at 10:35 pm (UTC 8)
Hi Marc,
The CDP might not be updated yet. Best to check on the morning of 16th July.
Linda Loy says:
July 22, 2009 at 10:19 am (UTC 8)
Hi,
When does NOL pay dividends and is it twice a year?
What was the latest amount paid?
I am unable to get the info from their website.
Any someone advise me as to whether I should hold on to the shares as long term investments?
Thank you.
lioninvestor says:
July 23, 2009 at 12:47 am (UTC 8)
Hi Linda,
NOL used to guarantee a certain minimum amount of dividends but have recently changed their dividend guidance policy.
You can read through their recent result announcements to find that.
alice says:
July 30, 2009 at 12:41 pm (UTC 8)
alternatively, you can find the past dividend information from sgx site. choose company:NOL
http://www.sgx.com/wps/portal/marketplace/mp-en/listed_companies_info/company_all-in-one_info/
Eric Lye says:
July 27, 2009 at 12:21 am (UTC 8)
I have paid $8775 for the NOL rights, what is the market value now ?
lioninvestor says:
July 28, 2009 at 8:30 pm (UTC 8)
Hi Eric,
Closing price of NOL shares is $1.69 today.
Eric Lye says:
July 28, 2009 at 10:52 pm (UTC 8)
What is the price of the NOL rights ? I have 6,750 NOL right shares, How much can I get if I will to sell them ?
Thanks/Rgds
lioninvestor says:
July 29, 2009 at 7:43 am (UTC 8)
Hi Eric,
did you pay to subscribe for your Rights? ie paying $1.30/rights to convert them to the mother share.
Eric Lye says:
July 29, 2009 at 11:14 pm (UTC 8)
Yes, I paid full for the rights.
lioninvestor says:
July 30, 2009 at 10:43 am (UTC 8)
Hi Eric,
That means you own them as NOL shares now. You can refer to your July CDP statement for the total number of NOL shares that you own.
kelly says:
August 9, 2010 at 9:47 pm (UTC 8)
Hi
I would like to know how to sell the right issue after excercising the right.
regds
Kelly
lioninvestor says:
August 10, 2010 at 3:08 am (UTC 8)
Kelly,
Do you see the shares reflected in your CDP account? They can be sold like normal shares.