Martin Lee @ Sg
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DBS Rights Issue Offer Document

Further to the initial announcement of DBS on their rights issue, DBS has just released their offer document. The document will be sent to entitled DBS shareholders on 6th Jan 2009. The softcopy of the offer document can be found here:

DBS Rights Issue Offer Document

Some key dates (found on page 6 of the document):

Commencement of trading of “nil-paid” rights: 6th Jan 2009 from 9am

Last date and time of trading of “nil-paid” rights: 14th Jan 2009 at 5pm

Last date and time for acceptance of and payment for Rights Shares: 20th Jan 2009 at 5pm (930pm for electronic payment)

Expected date of issuance of Rights Shares: 30th Jan 2009

Expected date of commencement of trading of Rights Shares: 2nd Feb 2009

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32 comments
Soo Guan says 10 years ago

I had applied for the 500 DBS rights and the 500 excess rights through the ATM. Yesterday I received a letter from CDP that I have been alloted total 1000 DBS shares. So does it mean that if I want to I can sell 1,000 DBS shares in the trading market as if it were the DBS ordinary share which is the one that closed at $8.55 yesterday? Or is it the one that is indicated as DBS 500 that closed at $8.75?

Reply
    lioninvestor says 10 years ago

    Hi Soo Guan,

    You can sell them in either.

    The DBS 500 is for those who want to sell odd lots (500 shares) of DBS shares as the main DBS counter only allows for trading in 1000 shares denominations.

    Reply
      Joelle says 10 years ago

      Hi , do I need to do anything to convert my alloted right shares to mother shares? Or I can immediately sell them over the counter, as if I have already acquired the mother share at $5.42, assuming i am allotted 1000 rights issue.

      Thanks for the answer.

      Reply
        lioninvestor says 10 years ago

        Hi Joelle,

        Assuming you paid $5.42 (per share) to convert your rights entitlement to DBS shares, that should be sufficient. You should receive a statement from CDP telling you how much DBS shares were credited to your account.

        Reply
phua Puay Hoon says 10 years ago

How can I find out weather the acess qty purchase of additional DBS right issue of said 500pcs approve?

Reply
    lioninvestor says 10 years ago

    Hi Phay Hoon,

    If you are credited with any additional shares, you should receive a statement from CDP.

    Reply
CK says 10 years ago

thanks Lion,

just a quick one, in theory, the price of the share will be lowered after 1 Feb, it will be wise to sell our existing lot before the price drops ?

Reply
    lioninvestor says 10 years ago

    CK,

    why do you say that?

    Reply
CK says 10 years ago

Hi Lion,

I missed the right trading date bcos I am still at overseas. So, what can I do now if I want to fully utilize the right. Is it for every DBS share you owned, you will be given 500 DBS right. if so, can I buy this right in order to convert to 500 DBS shares so I will end up with 1.5 lots (I hv one lot of DBS previously).
can I do it over internet banking rather than ATm?

Reply
    lioninvestor says 10 years ago

    Hi CK,

    For every 1000 shares you own, you will be given 500 rights. You don’t have to buy the rights but you do need to pay the subscription price ($5.42/share) to convert the rights to the shares.

    Conversion has to be done via atm or by post.

    You can also try your luck at balloting for excess rights (say 500 to make your holdings into 2 lots). Again, payment of $5.42/share has to be made and this has to be done via atm.

    Note that the last traded price of DBS is $8.48.

    Reply
      lioninvestor says 10 years ago

      CK,

      Just to add on, the offer document has said that preference will be given to odd lots for those applying for excess rights.

      So in theory (if you can get that excess 500 shares on top of your entitled 500), you can convert 1000 DBS shares at $5.42, and sell your existing holdings at the same time to lock in an immediate profit.

      Latest time for conversion by atm is 930pm today.

      Reply
        lioninvestor says 10 years ago

        A correction: 20th is actually tomorrow. So you have 1 more day.

        Reply
BH says 10 years ago

Hi

How to convert the recent purchase right? and where, is it same as what we need to apply through ATM?

regards
BH

Reply
    lioninvestor says 10 years ago

    Hi BH,

    It has to be done via atm. Deadline by atm is 930pm today.

    You can refer to Appendix E and F of the offer document for more details.

    Reply
      lioninvestor says 10 years ago

      A correction: 20th is actually tomorrow. So you have 1 more day.

      You can also do the manual form method.

      Reply
Yeow says 10 years ago

i recently bought 1 lot DBS R500 from online trading. so i have 500 shares. i have no DBS shares pror to this.

what will happen to my DBS R500? can i continue to trade them next mth?

Reply
    lioninvestor says 10 years ago

    Hi Yeow,

    You need to pay 500x$5.42 to convert your 500 DBS R into 500 shares of DBS.

    After which you can keep or sell the DBS shares (after the shares have commenced trading).

    You need to act fast because you have until 20th Jan 5pm to do so.

    If you do nothing, your rights will simply expire.

    Reply
      Yeow says 10 years ago

      Hi lioninvestor,

      thanks for the prompt reply, just need to clarify one thing:

      my previous 500 DBS R500 shares PLUS after buying the 500 shares rights at the ATM at $5.42, i will eventually still only have 500 shares or is it now 1000 shares?

      Reply
        lioninvestor says 10 years ago

        When you go to the ATM, it is to convert your 500 DBS rights shares into 500 shares of DBS. The conversion cost is $5.42/share so you will end up with 500 DBS shares after conversion.

        It is not to buy additional rights. You also do not need to buy any more DBS shares now.

        Reply
      Yeow says 10 years ago

      at the same time, do i need to buy DBS shares now in order to have my DBS right converted at the end of the mth?

      Reply
new bird says 10 years ago

Correct me if I am wrong –

For investors buying Nil paid rights (trading at $3.95) they have to pay the taded price PLUS the Rights amount i.e. 3.95$ + 5.42$

Reply
    lioninvestor says 10 years ago

    Hi New Bird,

    Yes, that’s right.

    Reply
BH says 10 years ago

Hey,

Please advise, if I wish to subscribe the Rights, what shall do…
I am little green here, I means what action I should carry out example find money to buy the $5.42 through broker or ATM???

If I do not wish to subscribe, what shall I do? do nothing and just ignore it? will I loosing any $$$ for ignore it?

If I shall my right, so I earn the $5.42 or whatever amount I trade with the Rights? sound good deal? and I sell the my main share immediately so this means I earn the right money???

Sorry, I am quite blur blur…..

Reply
    lioninvestor says 10 years ago

    Hi BH,

    If you wish to subscribe for the rights, you can make payment via atm.

    If you do not wish to subscribe, you can actually sell the rights. They are currently trading at about $3.95. Note that the last day of trading the rights is 14th Jan.

    Reply
kopi-c says 10 years ago

Question:

The new DBS shares would be issued in end Jan 09, though shareholders eligible for issue had to own DBS shares on 31 Dec 08.

If one owned DBS shares on 31 Dec 08 (qualifying date for entitled rights issue), but sold them in first wk of Jan 09, is he still entitled to the rights issue based on his holdings on 31 Dec 08? It would seem so but just wanted to confirm.

Thanks.

Reply
    lioninvestor says 10 years ago

    Hi kopi-c,

    as the DBS shares trade ex-rights date was on 29th December 2008 from 9am, that means those who buy DBS shares on or before 28th Dec 2008 (and didn’t sell them) will get the rights.

    Reason: when you buy a share, CDP will credit them to your account on T+3, so last day to qualify for the 31 Dec ownership is to buy them before 29th Dec 08.

    A check with CDP on your holdings will confirm that you own (or don’t own) the rights.

    Reply
Larry says 10 years ago

DON’T BE STUPID………….subscribe to Right Issue for the long term or sell your rights……………the decision is yours!

Reply
jey says 10 years ago

Fortunately, I do not own any Bank stocks at this point in time.

My concern to small investor owning this particular stock on whether to subscribe is also a gamble …..assuming you subscribe to the rights issue and suddenly you find your shares diluted or even lower so …………..better to get out now and wait after a while and then decide to nimble at it slowly!!!

Me no expert and shall stay at the sideline to watch events unfolding………why waste time on this isse when you can pick up better stocks elsewhere.

Reply
lle says 10 years ago

Hi, you have only given the different options to the DBS right issue. Perhaps you could let us know your professional views as to whether small investors like me holding a few lots of DBS shares should proceed to subscribe to the right under current situation. Tks.

Reply
    lioninvestor says 10 years ago

    Hi lle,

    my views are as what I have given to Larry.

    At the end of the day, everyone will have his/her reason for holding or not holding DBS shares. Thus, it’s not possible for me to give a blanket answer on whether people should subscribe to the rights.

    To make a better informed decision, the entire offer document should be read.

    Personally, I do not hold any DBS shares.

    Reply
Larry says 10 years ago

Hi lioninvestor,

I’ve no idea about this rights issue, what is you opinion ? Is it a good time to subscribe or not?
Kindly enlighten me or should I give a miss?

Reply
    lioninvestor says 10 years ago

    Hi Larry,

    A rights issue is like a company telling you:

    “We need to raise money (for xxx reason) from our shareholders. Give us $x and you can maintain the same percentage of shareholdings.”

    So, my question to you is:

    Do you want to do that?

    If yes, then subscribe to the rights.

    Otherwise, you can sell your rights and get back a small amount of money. Even though the number of shares you own is the same, effectively, your percentage of shareholdings will decrease due to the enlarged number of shares (in this case a significant 50% increase in number of shares).

    Reply
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