Martin Lee @ Sg
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Applying for Rights Via ATM

There had been a number of people seeking clarification on the procedures for applying for Rights via ATM. Typically, you will be able to pay using the ATMs of one of our three local banks – DBS, UOB or OCBC. However, do not take for granted that your bank is automatically included in the scheme.

For example, there are cases where the Rights application only accepts ATM of UOB and OCBC. If you leave your Rights application until the last minute and you only have a DBS ATM card, then you will be caught out.

The way to confirm this is to check the offer document beforehand. There will be a page (under the appendix) which shows the list of participating banks for the Rights ATM application.

For your convenience, the outline procedure to apply for Rights ia POSB/DBS ATM is shown below. The exact procedures for the other banks might be slightly different. I haven’t tried it before for UOB and OCBC so I can’t reproduce the steps here.

1) Put in card
2) Key in pin
3) More services
4) English
5) ESA-IPO/Share Investment
6) Rights Appln
7) Continue
8) Select bank account
9) xxxxx R(where xxxxx is the company name)
10) Read and press continue (3 times)
11) Key in number of accepted rights shares and press enter. Eg. If you have 3000 rights for xxxxx you want to accept all rights, key in 3000.
12) Key in number of excess rights you are applying for and press enter.
13) Check CDP number and press enter. If incorrect or not shown, key in CDP number and press enter.
14) Check all details and press enter to confirm.
15) Take receipt and card.

When you are applying, also make sure you enter the correct quantity for the accepted rights and excess rights. Many newbies have made the mistake of entering the wrong numbers and paying the price for it.

Also, if you are using a joint-bank account to apply, make sure you are using your own ATM card and not the other party’s. Otherwise, the application will be void.

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38 comments
Jeremy says 4 years ago

Hi Martin
Do you know if Rights Issue (not IPO) application can be done through internet banking instead of ATM? As I’m currently overseas… If not, would I be able to simply sell (trade) the rights without having to reply to the manual OIS forms sent? I would not want to have my rights relinquished simply because I’m not in Singapore, thanks!.

Reply
    Martin Lee says 4 years ago

    Dear Jeremy, sorry for the late reply. Unfortunately, you can only apply via atm and not internet banking.

    If you can’t apply, you can sell off the rights in the market. There will be a trading period for the rights.

    Reply
Faustine says 4 years ago

Hi,

How do I apply for IPO through POSB ibanking? What does security counters mean?

What is the number of units that I should apply for? Does the number of units refer to number of shares or number of lots that I would want to apply?

What will be the payment for the application?

Thank you.

Reply
    Martin Lee says 4 years ago

    Dear Faustine,

    Click on Investment & Trading/Electronic Security Application (ESA).

    Securities refer to shares.

    Number of units refer to number of shares. It has to be in multiples of 1000 (or 100 come next year after the minimum lot has been reduced to 100).

    Payment can be cash or CPF (if it is CPF approved).

    Reply
Janson says 6 years ago

Hi Martin,

I applied wrong quantity of the olam rights ( subscribed 5000 rights instead of 1565 which is the accepted quantity)?
What will actually happen?

Reply
    Martin Lee says 6 years ago

    Dear Jason,

    I think it will be up to the company (at their discretion) to process your application.

    You can try checking with Boardroom. 65365355

    Reply
Mark says 7 years ago

hey Martin,

I am trying to subscribe to lippo rights as well.

On 18 Nov, i went to the atm machine to subscribe to lippo rights. After step 13, it states that i do not have the rights in my cdp account and whether do I want to continue.

I bought the nil-paid rights on 15 nov, may I know why i do not have the rights in the cdp account?

Reply
    Martin Lee says 7 years ago

    Hi Mark,

    It takes a few days for them to appear in your CDP. If you are sure you bought them under your personal account (and not some nominee account), you can just go ahead and apply.

    Reply
      Mark says 7 years ago

      Thanks for the prompt reply 🙂

      Reply
Hcgn says 7 years ago

Hi Martin,
Thanks. Was told to pay up Lippomalls R and then ATM, both by 18 Nov. understand acceptance of rights is 24 Nov. If I buy more lippomalls R tomorrow or fri, would I have to pay up Lippomalls R and then ATM by 18 Nov?

Reply
Hgn says 7 years ago

Hi lioninvestor,
I bought xxxx lippomalls rights shares through sgx trading. I am not entitled to any rights as I do not own lippomalls mother shares.
At step 11, do I key in xxxx and press enter?
At step 12, do I key 0 if I am satisfied with xxxx above?
If want more (say yyyy), I key in yyyy here and press enter? What would be the price for yyyy? When and how would I know if successful? Whole transaction is $2?

Sorry for many questions. Appreciate your assistance. TIA.

Reply
    Martin Lee says 7 years ago

    Hi Hgn,

    I have replied to your email.

    Reply
sonrisa says 9 years ago

thank you very much for your instructions. its very concise!

Reply
CK says 9 years ago

Hi lioninvestor,
Thank you!

Reply
CK says 9 years ago

Hello lioninvestor,
I am allocated 1000 PROVISIONAL right shares from Aztech but no intend to apply via ATM. Could I just sell this 1000 right shares away without applying the rights via ATM?

Reply
    lioninvestor says 9 years ago

    Hi CK,

    Yes, you can sell under Aztech R or Aztech R200. Note that the trading period for the rights is limited and for a short while only.

    Reply
XJ says 9 years ago

Dear Sir
I have yet to apply for my Genting rights but when I tried to do it earlier , it wasn’t possible ( Since it’s a Sunday ) , I will be leaving for a business trip tomorrow.. wonder if it’s possible to do it after Midnight today ?

Thanks

B.r
XJ

Reply
    lioninvestor says 9 years ago

    Hi XJ,

    According to offer document, the ATM application is available daily from 7am to 930pm (except for Sundays).

    Reply
leilei says 9 years ago

I had applied and paid my right shares and excess rights shares via ATM, do i still need to submit my application form to CDP manually? Thanks.

Reply
    lioninvestor says 9 years ago

    Hi Leilei,

    No, you don’t have to.

    Reply
Alvin says 9 years ago

Hello, Mr Lioninvestor, I am a newbie in share trading. I am entitled to 1000 rights of Genting shares. I ve been trying to pay the rights via posb atm machine by following the abovementioned steps but I am not able to perform the step no. 13. Once i keyed in my cdp account no. and press enter, my card was rejected by the machine. Can lioninvestor tell me why?I am so worry as the due date for paying the rights is around the corner. Thanks a lot.

Reply
    lioninvestor says 9 years ago

    Hi Alvin,

    What was the rejection message?

    Reply
      Alvin says 9 years ago

      Hi Lioninvestor,

      I ve made the payment for 1000 rights and applied for 2000 excess rights. The rejection was due to my mistake. Thanks for ur prompt reply.

      Reply
Edmond says 9 years ago

Hi Lioninvestor,

I can’t find any charges imposed by bank via their website. Can I just confirm that it is always $2 regardless the amount we pay to apply for the shares?

Thanks.
Edmond

Reply
Aries says 9 years ago

Thanks, lioninvestor,
That means, at accepted rights I should 0, because I do not entitle any rights.
And at excess rights I should enter 20000, because I bought 20000 rights and I wise to convert all to their warrent. Am I right?

I think because my IC number in CDP is different from the one in my bank account.

Reply
    lioninvestor says 9 years ago

    Hi Aries,

    Nono, you should enter 20000 for the accepted rights, and any other number for the excess rights.

    How can the NRIC number be different?

    Reply
      bluesdude says 9 years ago

      Hi Aries,

      My guess is that you may have opened your CDP account with a different NRIC no (e.g. Malaysian IC) and opened your bank account with your Singapore PR NRIC or vice versa.

      You’ll need to go to CDP / Bank to update your NRIC info so that they are consistent.

      Reply
Aries says 9 years ago

What’s diferrent between accepted rights and excess rights? I just brought 20000 of SeeHS R, now I need to apply for the right to convert to warrent, how do I do that? I try to use ATM, but it says my IC number is different so I can’t apply. Is the any other method to apply?

Reply
    lioninvestor says 9 years ago

    Hi Aries,

    Accepted rights means accepting the rights you are entitled to.

    Excess rights means rights you are not given but you would like to try to apply for them.

    Did you enter the correct CDP account number?

    You can request for the rights application form from CDP. Payment will be via cashier’s order.

    Reply
Edmond says 9 years ago

Hi Lioninvestor,

Just to clarify this statement:

========
When you are applying, also make sure you enter the correct quantity for the accepted rights and excess rights. Many newbies have made the mistake of entering the wrong numbers and paying the price for it.
========

Paying the price u mentioned above is losing the money?

Reply
    lioninvestor says 9 years ago

    Hi Edmond,

    Means lose money. Say you are entitled to 5000 rights (which would have allowed you to buy 5000 shares of genting at $0.80), if you key in only 5 (instead of 5000) when applying, you will be given a grand total of 5 Genting shares (purchase price of $0.80). You would have made a loss of about 4996 * $0.30 ($1.10-0.80).

    Reply
hjteo says 9 years ago

Shannon,

I hadn’t this experience before. However, read from sgfunds that you can apply again. Say if you have 20 lots (20,000) of Genting shares, hence given 4 lots (4,000) rights. At the ATM should key in 4000. As you have submitted once, submit again as 3996.

Also do consider applying for excess shares too.

http://forums.sgfunds.com/viewtopic.php?t=4077&postdays=0&postorder=asc&start=925

To confirm maybe check with CDP or SGX.

Reply
Shannon says 9 years ago

sorry am still very new so a little confuse here…if i have 20 genting shares it means that i am entitled to 4 rights…so that means if i apply via through the atm machine i have to key in 4000 rights instead of 4?
thanks for the help again=)

Reply
    lioninvestor says 9 years ago

    Hi Shannon,

    Do you have 20 or 20,000 Genting shares?
    Number of rights you are given is number of shares you have divide by 5.

    Reply
Shannon says 9 years ago

Hi lioninvestor,

If i had applied for the wrong quantity of the genting rights ( entered 4 rights instead of 4000) Can i apply again by keying in 4000 rights? or should i key in 3996 (4000-4)??
Thanks alot!!

Reply
    lioninvestor says 9 years ago

    Hi Shannon,

    It is a tricky situation as the ATM application is non-revocable. I am not too sure how they will consider the 2nd application.

    For people who submit applications via both ATM and form, CDP has the right to accept the application in whatever combination it deems fit. So, there would still be some uncertainty and risk.

    I would say the safest way for you would be to sell the 4000 Genting rights that you have. Currently, you can get about $0.30 for each share which is similar to the price of Genting on the open market (0.30+0.80). Before selling, just make sure your entitlement is really 4000 rights. If you do that, your application of 4 rights will be disregarded and $3.20 will be refunded to you.

    Reply
alice says 9 years ago

thanks lion investor.
your instruction is clear and helpful. It helped me during the previous capitacomm rights subscription.

by the way, K-reits asia just announce 1-1 rights issue. If not wrong, they have had issue right issue in march 2008. Is it very common for reits to issue rights every 18th months?

cheers!

Reply
    lioninvestor says 9 years ago

    Hi Alice,

    The recent spate of rights issue of REITS are due to a few factors:

    1) Gearing becoming too high due to drop in property valuation.
    2) Inability to refinance fully existing debts.

    Rights is one way of raising capital. Some others have done private placement.

    Reply
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