Genting Rights Issue

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213 comments

Big Sotong says 14 years ago

Hi!

I have recently sold off my mother shares for Genting. But I have forgot to sell off the 2 lots of my entitled shares (in CDP) together.

Anyone could advise how can I sell that 2000 shares?

lioninvestor says 14 years ago

Just enter the sell transaction online like you normally do or call your broker?

Edmond says 14 years ago

Hi
If we buy 800 shares from Genting SP 200 and 1000 shares from Genting SP on the same day, does the service charge to broker counted twice or only once?

lioninvestor says 14 years ago

Hi Edmond,

You will have to check with your broker on that.

Actually, you could have bought all 1800 using Genting 200, then you will definitely be charged only once.

sunstar says 14 years ago

Hi Lioninvestor,

Now the right has been converted to genting normal share ( genting sp200 ) .

Can i hold it for long term ? or i must start to trade ?

lioninvestor says 14 years ago

Hi Sunstar,

Did you pay the $0.80/right to convert it into normal shares? If you did, it will appear in your CDP account and you can sell it just like the normal Genting shares.

Jason says 14 years ago

Hi Lioninvestor,
I have got my rights allotted to me.
Only 1200 rights and Genting SP gave me another 1000 excess right. That make it 2200, an odd lot.
Are they supposed to avoid odd lots by alloting like 1800 or 800 shares?
Anyway, just want to know how to sell my odd lots, the 200 shares?
Is it genting SP, genting SP 200, genting SP ES0910 or
genting sp es 0911?
what is the difference bet them?

Truly need your advise.

lioninvestor says 14 years ago

Hi Jason,

The 200 shares (or any amount in denomination of 200) can be sold using Genting SP 200 on the mainboard; listing for that counter is about 4 weeks.

Alternatively, you can use Genting SP on the unit market.

ES refers to extended settlement contracts.

http://www.martinlee.sg/extended-settlement-contracts/

Novice says 14 years ago

Hi Lioninvestor,

I have 10200shares in total(original share:8000, rights:1600, excess rights:600) as at 21st.

Currently still odd lots? If i dun sell one mth from 21st, it will expire worthless?
What should i do now?

Thanks for your reply.

lioninvestor says 14 years ago

Hi Novice,

No, they won’t expire worthless. You will still own 10200 shares if you don’t do anything.

Novice says 14 years ago

Hi,

But how come everybody is selling the odd lots? ie the extra 200shares? still odd lots? I saw most ppl either selling off 200shares or buying another 800shares?

Like Jason(below) Why is he still query regarding the extra 200shares?

lioninvestor says 14 years ago

Hi Novice,

I think a lot of people think they will be stuck with the 200 shares and can’t sell it after the Genting SP 200 counter is removed in a few weeks time.

Novice says 14 years ago

Hi Lioninvestor,

I have sold my 200 odd shares under Unit Share, my poems account become 7800shares, while my cdp is 10,000.

Wanted to ask, the poems doesnt reflect 10k?

lioninvestor says 14 years ago

Hi Novice,

Don’t worry about what appears in your POEMS account. It doesn’t capture changes to your shareholdings that occur outside of poems.

What is important is what appears under CDP.

Novice says 14 years ago

I see, ok thanks
btw if odd lots, ppl can just sell under Unit Share in Genting SP in the future right?(understand there we are not able to sell odd lots)

lioninvestor says 14 years ago

Hi Novice,

No problem for odd lot. As I mentioned, can sell using unit market (commissions apply).

Novice says 14 years ago

so in the future, this Genting SP under Unit Share will be closed? Or we can always trade there as commission lower

lioninvestor says 14 years ago

Hi Novice,

Genting SP and unit share market will always be there. Only Genting SP 200 is for limited period.

Edmond says 14 years ago

Hi,
If we did not hold any share of a company and when the company offeres right, can we just apply by indicating accept the PAL = 0 and excess rights = # of shares we want to apply?

I seems to get a message that i do not have any shares in my cdp when try to apply via atm .. 🙁

lioninvestor says 14 years ago

Hi Edmond,

Technically anyone can apply for the rights but when they allocate them after the offer has closed, they will check for validity. Non-shareholders will not get any.

Edmond says 14 years ago

Hi,
Does this means that, if I buy some Rights from the company during the nil paid period, then I am eligible to apply for excess rights?

lioninvestor says 14 years ago

Hi Edmond,

No, that won’t work.

Edmond says 14 years ago

Hi Lioninvestor,
Linair R now is listed. I do not have any of the share of Linair. If I buy Linair R from the market and made payment for it, I can get the Linair Share right?

lioninvestor says 14 years ago

Hi Edmond,

If you buy Linair R from the open market, you will also need to use it to subscribe for Linair Rights Shares at $0.03/share.

Rex says 14 years ago

Hi,

I just got a notification letter from CDP, i applied for 5000 excess, but only got 1000 allotted instead. it is necessary to sell all the right issue shares within a certain period?

will these right issue shares being mixed up with my normal genting sp shares, and show up in my poems account?

Thanks.

Regards,
Rex

lioninvestor says 14 years ago

Hi Rex,

the rights issue shares and normal shares are the same. They won’t show up in poems account but you can still sell through there.

Sumedha says 14 years ago

Hi Lioninvestor,

I had applied 8000 excess but got 200 allotted instead.

So for selling, I will select the counter Genting SP 200 and enter 200 for the ‘No. Of Shares’ field. Am I correct about this?

P.S I am using POEMS Internet.

Regards,
Sumedha

lioninvestor says 14 years ago

Hi Sumedha,

What you describes works but if you have POEMS account, you can also trade using their unit share market. Click on unit share, look for the normal Genting share and sell your 200 shares.
The reason for using the unit share market is that the min commission is lower at $10.

If you trade the Genting 200 using the normal market, the minimum comm is $25.

Sumedha says 14 years ago

Thanks Lioninvestor!

So just to confirm my understanding. I will go to unit share market and select Genting SP instead of Genting SP 200 and enter 200 for the No. of Shares to sell?

Regards,
Sumedha

lioninvestor says 14 years ago

Hi Sumedha,

Yes, but just to check, how many normal rights did you get on top of the 200 excess?

Sumedha says 14 years ago

I got 2000 rights shares.

lioninvestor says 14 years ago

Ok, so if your intention is to keep that 2000 shares and sell the 200 excess, you can do that method as indicated above.

Note the the unit market price might differ by 1 or 2 cents compared to the normal price. It’s all a matter of demand and supply.

Sumedha says 14 years ago

In this case, I can sell off my odd shares anytime from unit share market right? Not worrying that Genting SP 200 will be removed.

lioninvestor says 14 years ago

Hi Sumedha,

Yes, there’s no time limit if you use the unit market.

lien says 14 years ago

hi,

I have subscribed 4000 Genting shares but only managed to get 200 shares, am i able to sell the odd lots in the later date under Genting counter ? or must i have to sell it now before Genting SP 200 being removed?

Thanks to advise.

Lien

lioninvestor says 14 years ago

Hi Lien,

Yes, there’s the unit market you can trade on. Orders have to be placed through brokers so offline charges apply. Alternatively, POEMS online allow you to trade in the unit market for $10 min comm.

Tan Elvin says 14 years ago

ya that is damn strange. they give 200 odd lots to those who apply excess right => either we sell it or keep it and if we keep it we have to buy another 800. that is so smart.

lioninvestor says 14 years ago

Hi Elvin,

Actually, you are not forced to buy another 800.

There is always a unit market for transacting the 200 shares.

But I agree the allocation is a bit messed up. Everyone ends up with odd lots.

Toh says 14 years ago

Hi,

I apply for 2 excess lots for 1600 but failed and Genting only return 1440 to me. Can anyone tell me why is there short of 160?

lioninvestor says 14 years ago

Hi Toh,

It means Genting gave you 200 more shares. 200x 0.80=160

Rex says 14 years ago

I’m entitled to 13,000 right, and i bought another 5000 excess shares at ATM, and paid S$14,400.00. I just checked my POEMS account yesterday night, and never reflect anything above the Genting SP R shares, what should i do?

lioninvestor says 14 years ago

Hi Rex,

It won’t be reflected in your POEMS account. You need to check your CDP account.

shaun says 14 years ago

Just checked my cdp account and saw that as at 21 Oct, I have 1,200 Genting SP R. Is this the same as the Genting SP 200, ie I can sell it? thanks

lioninvestor says 14 years ago

Hi Shaun,

Genting SP R is not the same as Genting SP. I think you forgot to subscribe to the rights. Unfortunately, the 1200 Genting SP R that you have will expire worthless.

sunstar says 14 years ago

Hi,

What u means by i can see how much $ was refunded to me ?
no idea about this …

lioninvestor says 14 years ago

Say you applied for 10000 excess rights at $0.80. If they refund $7200 to your bank, it means you were given 1000 excess rights.

sunstar says 14 years ago

HI,

how do i know if all my right has been converted to normal genting share ?
will i get any wirtten confirmation on that ?

when can i start to trade my genting share in sgx ?

kindly advise.

thanks & regards,
sunstar

alice says 14 years ago

hi sunstar,

you can check your cdp account online.
I don’t think you will get any written confirmation.
you can start trading since 21oct 9am, as indicated by lion investor article above.

lioninvestor says 14 years ago

Hi Sunstar,

The written confirmation will come a bit later.If you can check your CDP account online, that’s the fastest way of knowing your result.

Another way is to see how much money was refunded to you.

Tan Elvin says 14 years ago

then i can check with you, when will the rest of the money be credited back to me?

lioninvestor says 14 years ago

Hi Elvin,

You can check your bank account. It could be in already but they can take up to 14 days to refund the money.

Tan Elvin says 14 years ago

Hi,

i think i got 1200 of the excess right. can i check with you, when will the Genting SP200 be closed?

regards

lioninvestor says 14 years ago

Hi Elvin,

They will be available till 21st Nov.

In any case, odd lots can always be traded on the odd lot market.

Edmond says 14 years ago

Hi,

Genting announced there wil be a counter selling 200 shares.. does it mean our share will not be rounded up? i.e. 1,200 shares remains as 1,200 and not round up to 2,000?

lioninvestor says 14 years ago

The Genting counter has all along been in place for those who ends up with odd lots. Not everyone applies for excess rights, nor is allocation guaranteed.

Edmond says 14 years ago

Hi,

Just curious.. how can we know how much rights we are allotted before the letter from CDP? Will it be shown under Genting SP R a day before the expected trading date?

Thanks.

lioninvestor says 14 years ago

Hi Edmond,

You can check your CDP account online or see how much money is refunded to you.

It will be reflected as normal Genting shares.

McScot says 14 years ago

Hello …

PANIC stations … I’m working overseas and have just found out that the Genting have offered to convert(?) my rights and have not been able to convert them … WHAT DO I DO?! Do I just ose all my rights?

lioninvestor says 14 years ago

Hi McScot, what did the notice say?

Usually for those rights that are not eligible to foreign shareholders, they will just sell your rights and give you the money. If you do not fall into this category, unfortunately you would have lost your rights.

sunstar says 14 years ago

Dear Lioinvester

1 bought genting spr ( 15000 ) and paid.

now i going to convert to genting normal share.

from ATM, i need to kep accepted right as 15000 and pay SGD12000 ( 15000*0.8 ) , is it ?

Does it means that my total buying price of genting sp is 0.8 + genting spr rate ?

please advise .

thanks ,
sunstar

lioninvestor says 14 years ago

Hi Sunstar,

Yes, you are correct.

Mei says 14 years ago

By when we will be informed about the results of excess rights application ?

I’ve got a statement shows my confirmed nil-paid rights qty only but not the excess rights application.

thanks

lioninvestor says 14 years ago

Hi Mei,

You will receive a statement from CDP a few days after the results are known.

Alternatively, you can login to check your online CDP account.

Louis says 14 years ago

If we apply the rights thru ATM, do we still need to fill in any form to send to CDP ??

Thks

lioninvestor says 14 years ago

Hi Louis,

Either one is sufficient.

E says 14 years ago

Hi Martin,

I bought 10lots previous, was given 2lots of rights and i applied for 5 more when i was trying to pay using the atm .

so in total the ATM transfer was for 7lots.
Does it mean that I was already awarded 2lots of Rights + 5 extra lots? Or That 5 extras are still pending for allocation?

Thanks.

lioninvestor says 14 years ago

Hi E,

the 2 lots will be confirmed. The remaining 5 is subject to allocation. You may get anything from 0 to 5000 shares.

Blurrrr says 14 years ago

Dear lioninvestor,

I was holding 2000 units before it came with the rights issue.
so I am entitled 400 rights. I heard from someone saying the price for excess rights will not be 0.80 but will be (0.80+~0.30 as some floating points??) not too sure what it’s called.

Have you heard of something like that??

however, I’ve accepted the entitled rights and applied for access rights via ATM and all deducted from my atm account is (entitled+excess rights)*0.80.

so I am not sure if the additional charges comes later??

please comment as I become blur after hearing around. =p

thanks ya.

lioninvestor says 14 years ago

Hi Blurr,

No extra charges unless you go and buy the rights from the open market to apply.

In that case will be around 0.30+0.80.

Blurr says 14 years ago

Hi lioninvestor,

thanks for your advice.
that means, if the excess right application is done thru ATM, then the price will still be 0.80 per share. however, the number of units allocated later will be subjected to approval right??

for example, if I am entitled 400 rights (coz I was holding 2000 shares earlier), and now I’ve applied for 2000 excess rights thru ATM, the possible approved unit will be 600 (based on your explanation on oddlot holder) =p

and all approved excess rights will be at 0.80 (w/o the 0.30 since I applied thru ATM).

Sorry that I sounded long winded, but this is to makesure I understood your explanation. THanks alot for your patience. =)

rgds

lioninvestor says 14 years ago

Hi Blurr,

Assuming you applied for 400 rights and 2000 excess rights, the total amount of shares you get allocated can range from 400 to 2400 shares.

Whatever you get will be at a price of $0.80.

Although, odd lot holders have priority, the excess rights is still subject to allocation.

Consider the extreme case where there’s no excess rights leftover to be allocated, then of course no one will be getting any excess rights.

Usually, there will be 1-2% of rights not taken up and used to satisfy excess rights application.

elvin says 14 years ago

i guess the excess rights is quite hard to apply.. the chances should be quite slim as there is too many supporters whahaa….

fw says 14 years ago

Glad to see so many Genting supporters here.

Wish all of us good luck!! 🙂

elvin says 14 years ago

oooo thanka lot… you should have tell me .. sad…… will be smarter next time.

lioninvestor says 14 years ago

Hi Elvin,

You can still try applying for some excess rights. Maybe you can get some.

elvin says 14 years ago

yes i am given 400 rights shares from my previous holding of 2000 shares of genting.

+ i got another 600 from trading of nil paid Genting R200.

so am i right to say i must pay $800 at the atm before 12Oct?

lioninvestor says 14 years ago

Hi Elvin,

Yes, you are correct.

Actually, you shouldn’t have spend the money to buy the additional 600 rights. You could have applied for 400 rights and 600 excess rights. Good chance to be allocated the 600 excess rights since the priority for excess rights allocation will be given to odd lot holders.

elvin says 14 years ago

i make payment for 600 right on R200 shares and am alloted 400 shares. i must pay for the right shares of $800 at the atm right? before 12Oct right?

lioninvestor says 14 years ago

Hi Elvin,

Do you mean you were given 400 rights from your previous holdings of 2000 shares of Genting?

Novice says 14 years ago

Hi lioninvestor,

i wan to subscribe but the ATM machine near me cant issue shares and recepit. U know sometiems it shows this msg when u about to key in ur pin no.?

U mean i have until 12th to apply and make payment for my rights and excess right?

Novice says 14 years ago

err.. what do u mean last day to sell when i haven even subscribe the rights???

lioninvestor says 14 years ago

Hi Novice,

I am saying,

1) You either sell your rights or
2) You subscribe. ie convert your rights into rights shares (Genting shares).

You have until 12th for option 2.

You can’t do option 1 already.

You have to be clear on the difference between rights and rights shares. Please read my example given to CGK.

http://www.martinlee.sg/genting-rights-issue/comment-page-1/#comment-29318

Novice says 14 years ago

Hi lioninvestor,

I have subscribe to the rights share of 1600 and excess rights of 1400.. totalling to $2402

If in this case the approved excess rights only given to me is 400, the 1000excess rights which i paid for will be refund to me back to my posb account?

lioninvestor says 14 years ago

Hi Novice,

Yes. Either direct to your bank or a cheque.

Novice says 14 years ago

Hi lioninvestor,

Today is the last day to subscribe? My nearby atm cant issue shares! damn it! Any other method? By what time we need to do it?

lioninvestor says 14 years ago

Hi Novice,

today is the last day to sell the rights if you do not wish to subscribe.

You have up to 12th to apply.

What do you mean your atm can’t issue shares?

Jason says 14 years ago

Hi Lioninvestor,
I prefer subscribing the rights at ATM. Does that mean i need not to fill up the forms and post it back right?
After that, i will just wait for the result (By how should i know?)

Sorry, too new to rights.

lioninvestor says 14 years ago

Hi Jason,

That is right.

CDP will send you a statement on the results a few days after the results are finalised.

You can also check by accessing your CDP account online. This will be faster.

Amy says 14 years ago

If i sell part of the rights, i can still subscribe the remaining rights ? Let say i have 1800 units and i sold 800 units. I can still subscribe the remaining 1000 units?

lioninvestor says 14 years ago

Hi Amy,

Yes, you may do that.

kc says 14 years ago

Hi Lioninvestor

If today i buy the rights from the market , when do we need to pay the 80cts to convert it to mother share ?

lioninvestor says 14 years ago

Hi kc,

Latest 12th Oct.

Novice says 14 years ago

Do we need to convert to mother share in order to sell in the market??

lioninvestor says 14 years ago

Hi Novice,

If you do not convert them to mother share (ie subscribe to the rights), you will need to sell them by 6th Oct. After which they will expire worthless.

Novice says 14 years ago

Hi Lioninvestor,

Once we applied for rights and excess, they will deduct the payment straight away from my a/c?

lioninvestor says 14 years ago

Hi Novice,

If you pay using cashier’s order, the money will need to be deducted before the bank can issue you the cashier’s order. If you pay using atm, the money will be deducted at the point of application.

Amy says 14 years ago

Hi,
i have 1800 rights allocated to me and if i want to sell it, may i sell all the 1800 under the Genting SP R200 counter?

Thanks.

lioninvestor says 14 years ago

Hi Amy,

Yes.

Ng says 14 years ago

hi,

i need to sign on the form and send back to Genting for the right issue form or just paid at an ATM.

lioninvestor says 14 years ago

Hi Ng,

You either pay and subscribe via ATM, or fill in the letter and submit it in together with your cashier’s order.

cgk says 14 years ago

Hi Lioninvestor,

What is mean “Expected date of commencement of Rights Shares is 21st October 2009 from 9am”.

lioninvestor says 14 years ago

Hi CGK,

The new Genting shares that you get from subscribing for your Rights will start trading from 21st Oct.

ie. you can sell them from that point onwards.

cgk says 14 years ago

hi lioninvestor,

the period is very short, mean after the period, the right issue shares is no value at all in the market?

lioninvestor says 14 years ago

Hi CGK,

The Rights have to be subscribed otherwise they will expire worthless.

cgk says 14 years ago

Hi Lioninvestor,

If i buy the right issue shares from the market now, can i sell it off later when the price went up.
Any restriction for right issue shares in buying & selling?
What is the different between right issue share & mother shares?
Sorry for asking a silly question but not really understand. Thanks

lioninvestor says 14 years ago

Hi CGK,

Say you have 10,000 Genting shares.

You will be given 2000 Genting Rights.

You pay $0.80/right to convert them into Genting Rights Shares, which is the same as Genting shares.

The period for trading of Rights is very short, if you buy, it will be at your own risk.

Aaron Lee says 14 years ago

Hi,

Apply through Atm-I’m entitle to apply rights for 3,400 but I’ve accidentally select entitled apply for 4,000.By right I shld apply for entitle 3,400 and 600 for excess rights. Shall I re-apply again for the excess right of 600?Appreciate your advised soonest.

Thanks
Aaron

lioninvestor says 14 years ago

Hi Aaron,

I don’t have a definite answer on this, you can call up CDP to check.

Hinde says 14 years ago

Hi Lion Investor, i have a question below and appreciate if u can shed some light.

If I bought genting shs @1.12 before it went ex-rights on Sept 18th, and I sold it off on 30th Sept @1.12, what kind of return/loss would i get?

lioninvestor says 14 years ago

Hi Hinde,

If you bought your Genting shares before the 18th and sold it after that, you would have gained from the Genting rights you were given which you can sell away at $0.30/right now.

Sumedha says 14 years ago

Hi Lioninvestor,

Currently while applying the for the rights shares and exess rights shares, I still can trade my existing Genting shares now after I had being alloted with number of rights shares right?

My current 10lots of Genting shares are making some profit, thinking of profit taking.

Thanks.
Sumedha

lioninvestor says 14 years ago

Hi Sumedha,

Sure you may.

Amy says 14 years ago

Hi,
I am entitled to 1000 rights..and i m from malaysia. Until now,i have not received the letter possibly it will be delayed. If i were to pay via atm, is the cdp linked to the atm? Coz i get my friend to help me to pay in sg.
And do i need to fill in the form and send it before 12 october if i ady pay via bank draft or atm?
first time applying sg rights..
Kindly help!Thanks!

lioninvestor says 14 years ago

Hi Amy,

Take note that when you pay using ATM, you will need to use your own bank and atm card which has the same name as your CDP account.
You can’t get your friend to apply for you.

You will be asked to enter your CDP account number when you are applying.

http://www.martinlee.sg/applying-for-rights-via-atm/

You either apply either by
1) form with cashiers order or
2) atm

Jason says 14 years ago

Hi Lioninvertor,
Thanks for the advice…
I just got my letter today, is infront of me and i am filling it.
Entitled 1200 rights, but i will bid another excess right of 12800. Possible to get it? Just base on your experience.
And
1. How do i know whether i have get the excess right before 12 October? need to get the money ready:)
2.If i bid for 12800 excess, plus 1200 my entitled rights, the total would be 14000. So, i need to pay $11,200 in advance, am i right?
3.And when my excess right has been rejected, will they be giving only 2800 instead of 12800?

Again, many thanks!

lioninvestor says 14 years ago

Hi Jason,

Given that price of Genting is so much higher than $0.80, demand for excess rights will be quite high. Think you would be likely to get 800 or 1800 excess rights.

You have to pay upfront for all the rights you are applying, the balance will be refunded to you after the new shares have been issued.

cgk says 14 years ago

Hi lioninvestor,

Need some advice.
If i don’t own any genting share, can i buy the genting right issue share. If can buy, how much is 1 lot. thks.

lioninvestor says 14 years ago

Hi CGK,

no you can’t.

cgk says 14 years ago

Thanks.
I’m new in this.
I was thinking that, we can buy any share that listed in the counter.
In other words, if i buy the mothershare now, can i buy the right issue share in the later part.

lioninvestor says 14 years ago

Hi CGK,

The mother share is already trading ex-rights so you get nothing if you buy it.

On the other hand, if you buy the Genting rights from the open market, you can subscribe to the rights shares at $0.80 each.

But there is might not be much point because price of rights + $0.80 should be equal to price of Genting itself.

cgk says 14 years ago

hi lioninvestor,

If i buy 2000 the Genting rights from the open market, how many right shares i can subscribe at $0.80.

thanks

lioninvestor says 14 years ago

Hi CGK,

2000.

cgk says 14 years ago

Hi lioninvestor,

thanks

so if i subscribe 2000 right shares, it’s mean i will have total of 4000 genting shares already. am i right to say that.

By then, can these shares be trade as normal in the market?

How to go about to subscribe the right shares?

lioninvestor says 14 years ago

Hi CGK,

Why would you have 4000?

Buy 2000 rights.
Subscribe=> the 2000 rights will become 2000 genting shares.

Sell like normal shares from 21st Oct onwards.

Subscribe by ATM or cashier’s order.

Jason says 14 years ago

Hi lioninvestor,
1.I have 6000 shares for Genting SP, and as i know, right issue i’m getting is 1200 rights. So, could i just subscribe for only 1000 of the rights?
2.Just to avoid odd lots, means when i subscribe additional 800 rights issues making total of 2000 rights, i can get the price $0.80?
3.I think GIRO should be able to transact my payment of right issue, right?

Many thanks!

lioninvestor says 14 years ago

Hi Jason,

Why would you want to forgo the chance to buy 200 more shares of Genting at $0.80 when it is trading at $1+?

You can always sell the 200 shares on the unit market later for an immediate profit.

Another way is to pay for 1200 rights, and bid for 800 excess rights. Priority for excess rights will be given to odd lot holders so you stand reasonable chance of ending up with 2000 shares of Genting – all bought at $0.80.

Novice says 14 years ago

How do i bid for excess rights?
If can earn immediate profit, isnt that all holder will opt for rights issue correct?
Sorry if it is a stupid question. =)

lioninvestor says 14 years ago

Hi Novice,

That is precisely what everyone will be doing – bid for excess rights.

Of course, bidding is one thing, getting allocated is another.

lioninvestor says 14 years ago

Subscription for rights is only via atm or cashiers order.

Novice says 14 years ago

Hi Lioninvestor,

I have 10lots but sold 2lots on 18/09/09, am i still entitled the share of 400?

Edmond says 14 years ago

Hi Lioninvestor,

Let’s say I hold 1,200 Right Share (Provisional) and I bought another 3,800 Right Share during the nil paid period (and fully paid for the Right Share bought). So the total Right Share in my CDP is 5,000 Shares.

When I made payment via ATM for this 5,000 Right Share, shall it be under the “Accepted Right Share” or “Excess Right Share”??

A bit confused if I am trading in CDP…

lioninvestor says 14 years ago

Hi Edmond,

First, let’s not confuse the terms rights and rights shares. They should not be used interchangeably.

Nil-paid rights refer to the rights you are given when you need to pay $0.80 to subscribe. After subscription, they become rights shares or just normal shares.

If you are given 1200 rights and subsequently buy another 3800 nil-paid rights from the open market, you should accept 5000 rights and whatever number of excess rights you want to apply.

If the genting shares appear in your CDP account, then you are using CDP.

Wilson says 14 years ago

Hi Lioninvestor,

What is fair value? Is there any brokerage and tax fees when i taking the rights share?

lioninvestor says 14 years ago

Hi Wilson,

The fair value is subjective.

There is a $2 transaction fee if you are applying via the ATM, or the bank’s cashiers order fee if you are using that to make payment.

Wilson says 14 years ago

How many mode of payment do we have to buy the rights share? Only ATM and bank’s cashiers? What about investment bank – did they apply the brokerage and tax fees to the rights share which we entitled?

lioninvestor says 14 years ago

Hi Wilson,

If you hold your shares in CPF/SRS, the payment mode will differ. Your agent bank will mail you instructions on subscription process.

Same also if you hold the shares via nominee and not in your CDP.

CM says 14 years ago

Hi Lioninvestor

After selling ALL my entitled rights during the “nil-paid” period 28Sept-6Oct, am I allow to apply for “excess” rights via ATM ?

lioninvestor says 14 years ago

Hi CM,

I am not sure about this point; will have to check with them.

One thing is that the ATM does not really check for your stockholdings when you are doing the application. Everyone can apply through the ATM (even if they have no shares). But when Genting is doing the allocation, they will weed out ineligible people.

Gerard says 14 years ago

hi lion,

I would like to check if I sell off the mothershares tomorrow, will I still be entitled to the excess rights? If yes, will I be given lower pirority as compared to those people who are still holding on to the mothershares?

lioninvestor says 14 years ago

Hi Gerard,

Yes, you can still apply for the excess rights.

Priority for the excess rights is given to odd lot holders and least priority given to directors and substantial shareholders.

Other than that, it is a black box how they prioritize the rest of the allocation.

Edmond says 14 years ago

Hi Lioninvestor

If we make payment via ATM, how can we specify we are buying the Provisional Allotment and applying for Excess Right Share?

Thanks.
Edmond

lioninvestor says 14 years ago

Hi Edmond,

you can refer to the process for Capitaland. It will be similar.

http://www.martinlee.sg/capitaland-rights-issue/#comment-10732

Edmond says 14 years ago

Hi Lioninvestor,

Ok thanks.

I saw there are two PL counter in CDP, i.e.Genting SP R and Genting SP R 200. Am I right to say that to trade in 200 shares, i shall use SP R 200 and for 1000 trade in SP R ?

When shall we expect the Provisional Right to be credited to our CDP Account? Is it today?

Thanks.

lioninvestor says 14 years ago

Hi Edmond,

SGX will list both for sale. The 200 specifies the minimum lot size so if you are selling less than 1000 rights, you can use that.

Rights start trading from 28th Sep so it should appear in your CDP just before that.

Edmond says 14 years ago

Hi Lioninvestor,
OK thanks.

I read through the online verion of the information to be sent to us on 28th Sep and wanted to clarify :-

If we accept 1,200 Right shares and apply 800 Excess Right Share via ATM, we pay a total of 2,000 x 80 cents = $1600 during the appln via ATM right?

If we did not get the Excess Right Share, it will be refunded via our bank account AND NOT via Cashier Order, etc .. am I right?

Thanks.

lioninvestor says 14 years ago

Hi Edmond,

To be precise, $1602.

$2 fee to be paid to the bank. 😀

The rest is correct.

Also, if you have your CDP account linked to your bank account for automatic crediting of dividends, CDP MAY also refund your balance rights money into that bank account even if you had paid using cashier’s order.

Louis says 14 years ago

Hi Lioninvestor

May I know if the genting share price will still subjected to adjustment after 12th Oct Or the share price will only be adjusted once & that was on 18 Sept.

lioninvestor says 14 years ago

Hi Louis,

The ex-rights date is the day the price will factor in the dilution. After that it is normal market movements.

jason says 14 years ago

so mean the price will not adjustment after commencement date? which 21oct

lioninvestor says 14 years ago

Hi Jason,

Current market price is what you get.

jason says 14 years ago

ok thanks

Mask says 14 years ago

Hi Lioninvestor,
Like to seek your advice on the following as i am quite new to Rights issue:

1) If i hold 5000 shares and sold all my shares on 22nd September, then am i still entitled to the rights issue of 1000 shares since the ex-rights date is 18th Sep? I am a bit confused if i should hold on to my existing shares till 18th Sept or 28th Sept in order to get the rights shares.

2) What does nil-paid rights mean? I saw that 6th October is the last day of trading nil paid rights and is a bit confused.

3) If i want to purchase the rights issue of 1000 shares, then when is the cutoff date for me to make payment through cheque/ATM? Is it before 6th October or 12th October?

4) When will the rights shares be credited into my CDP and thereafter i can start selling the rights shares? Is it 21st October?

Thank you.

lioninvestor says 14 years ago

Hi Mask,

1) Yes. You will see 1000 Genting Rights in your CDP account from 28th Sep onwards. This is the nil-paid rights and if you want to sell them, you have until 6th Oct to do so.

3) You have until 12th Oct to pay to convert the nil-paid rights into normal Genting shares.

4) After you have paid, the shares will be credited to your CDP and you can start trading them estimated on 21st Oct. Look out for a confirmation on the exact date later.

Mask says 14 years ago

Hi Lioninvestor,
Thanks for confirming that i am entitled to the 1000 rights shares provided i hold on to the existing shares until 18th Sep.

A few more questions below to seek your advice. Thanks.

1) From 28th Sep onwards, I will be issued 1000 rights shares. So, if I want to sell them then I must do it before 6th Oct. But then can I sell this 1000 nil-paid rights at market price (e.g. $1.10) or at $0.80 before 6th Oct?

2) In this case, I have not made payment of $800 for this nil-paid rights yet since I have up to 12th Oct to make payment via ATM. So can I start selling before 6th oct? Or must I made payment first before selling?

lioninvestor says 14 years ago

Hi Mask,

You sell the rights only if you do not intend to pay $0.80/right to take up your entitlement.

The market price of the rights will be approximately

Market price of genting share – $0.80

In a nutshell, you are given 1000 rights which you can either

1) sell for $200-300+ (depending on price)
2) pay $800 to convert them into normal shares.

There is also the option of excess rights.

You might want to refer to my earlier post on Capitaland Rights Issue for a more detailed explanation.

lioninvestor says 14 years ago

By the way, you can’t make payment by cheque. Has to be cashier’s order or atm.

Louis says 14 years ago

I bot 5000 genting on 16 Sep, so may i know when can i subscribe the rights & how do i subscribe the rights?

Thanks & Best regards

lioninvestor says 14 years ago

Hi Louis,

Payment can be done via atm or cashier’s order. Look out for the offer document which will be sent to you around 28th Sep.

Skywalker says 14 years ago

Hi Lioninvestor,

I am a bit confused on the rights issue too, so please enlighten me:

Q1: Does it mean that from 28 Sep, I can convert the rights shares that I am entitled to mother share by paying the 0.80 via ATM? Once the rights are converted to mother share, I suppose I can sell at market price rather than $0.80 right?

Q2: If I do not wish to buy the rights, but I would like to sell the number of rights allocated to me, do I still need to go to ATM to subscribe the rights first before selling them off? When I sell off the rights do I sell it at $0.80 or at the market price?

Skywalker

lioninvestor says 14 years ago

Hi Skywalker,

1) Your rights will be converted to normal shares by paying the $0.80 and then you can sell at market price of genting.

2) If you do not wish to subscribe for your rights, you can sell them during the nil-paid trading period. You sell it at the market price which is about

price of genting – 0.80

lioninvestor says 14 years ago

Correction. Tradable period of the rights is till 6 Oct and not 5 Oct.

Peter says 14 years ago

Hi Martin,

Thanks for your response. I suppose we can sell odd lots for the Rights as I will only be entitled to 800 to sell basing on 4000 shares I still owned.

Thanks

Edmond says 14 years ago

May I know if we hold the shares in Genting and credited to CDP account, are we considered Entitled Shareholders or Entitled Depositor? What is the difference between the two?

lioninvestor says 14 years ago

Hi Edmond,

Entitled shareholders consists of entitled depositors and entitled scrip-holders.

If you hold your shares in CDP, you are entitled depositors.

stephen says 14 years ago

Hi Martin,

Supposed that genting counter closing price is $1.11 today.

What will be the estimated opening price tomorrow and how do we calculate this out?

Thanks.

lioninvestor says 14 years ago

Hi Stephen,

Take (closing price x 5 + 0.80)/6

Peter says 14 years ago

Hi Martin,

According to the key dates for Genting Rights –
Shares trade ex-Rights – 18Sep09 from 9.00am &
Commencement of trading of “nil-paid” rights : Monday, 28 September 2009 from 9.00 a.m

So when can we sell our rights if we dont want to keep them?

Is it the from 18Sep or 28Sep ?

Thanks and regards
Peter

lioninvestor says 14 years ago

Hi Peter,

Trading of rights can be done from 28th Sep to 5th Oct.

Look for a counter Genting R.

Edmond says 14 years ago

Hi,
Can anybody trade for the Right Share? How’s the payment work? Sorry, but I am new to this …

lioninvestor says 14 years ago

Hi Edmond,

You can refer to my post on Capitaland for an example:

http://www.martinlee.sg/capitaland-rights-issue/

stephen says 14 years ago

Dear Martin,

In the recent Keppel Land rights share issue, I saw my share price increased to 100%.

We now see GentingSP dropped 4cents below the opening CR price.

What are your comments and possible reasons for the drop? Is it due to historical sept/oct bearish trend or near correction period?

Stephen

lioninvestor says 14 years ago

Hi Stephen,

Genting shares have rallied by quite a lot before the announcement of the rights issue, so I’m not surprised it dropped from $1.20.

Keppel Land, on the other hand, was coming off a low during that time.

Human beings like to look for patterns but it’s futile to compare like this as a lot of factors could be affecting the price.

alan says 14 years ago

hey everyone investing or own genting sp share….raise high hope..it will raise tremendously…genting granted licences in malaysia 30 years back and now in singapore modern times …based on singapore reputation and effort it will be a plus. please genting do co-operate with sg government and you will raise as a shinning Sun outshine all casino in the world. it takes two hands to clap to make a …………………………………..
common sense tell if without IR……would property boom in Singapore? Capitaland and F&N? this is sg government is improving and follow the trend….life is short make it merrily…good luck to all..

Newbee82 says 14 years ago

Hi Lion investor,

Need your explanation does a company has limit of issuing Rights?

What it takes the board of directors to issue this rights aren’t there other alternatives to raise money ?

Thanks

lioninvestor says 14 years ago

Hi Newbee82,

Capital funding sources

1) Borrow from banks
2) Get new shareholders and do placement
3) Find new bondholders
4) Tap on existing shareholders (Rights issue)

If 1-3 fail or are not attractive, then you resort to 4.

There’s some requirement stipulated by SGX on the rights issue – can’t remember what they are. The rules were amended recently to make it easier for companies to do rights issues.

stephen says 14 years ago

I think s’pore IR is a roar to the region and many will “flog” here simply because its new in our country. If 50,000 tourists try their luck at $1,000, in a month, it can approximately see 50 million a month or 600 million a year. I personally will try $1,000 on the table. I’m sure the IR receive both low as well as high rollers, if they are coming by. I believe it will also be “well-received” by the speed of recovery and emerging opportunities in asia. With the new ranking of ease of business, S’pore will be better off in terms of economic recovery. The new IR will optimally “entertain” those who are here for business or leisure. Technically, it cannot be opined as in terms of “big” or “small” or succeed or failure. I personally think that all reasonable factors need to be measured individually as well as collectively in a given horizon as oppose to just one or a few variables or opinions.

The opening re-valued share price that comes with right is at $1.10. The ex-right price $1.05.

James Tan says 14 years ago

Hang Lung Properties’ Chan Says Singapore’s Casinos Will ‘Flop’
2009-09-10 05:20:36.882 GMT

Sept. 10 (Bloomberg) — Ronnie Chan, chairman of Hang Lung
Properties Ltd., Hong Kong’s fifth-biggest developer by market
value, said the two casino-resorts in Singapore will fail
because they won’t be able to attract high-rollers.
Las Vegas Sands Corp., the casino company controlled by
billionaire Sheldon Adelson, and Genting Singapore Plc, a unit
of Asia’s biggest listed gambling operator, are building
Singapore’s first two casinos.
Chan commented after attending the Bloomberg Leadership
Forum in Hong Kong.

“The big rollers are what make money in casinos, they will
never come to Singapore, it’s a family entertainment” location.
“You think big-rollers will go to Singapore where they
have teeth and fangs coming out sideways? There are too many
rules. I was in Sentosa island, I really think that it’s going
to be a flop.
“The whole integrated entertainment industry, I’m worried
for them. The good thing about Singapore is that if you flop,
you’re given a second chance.”

Intheknow says 14 years ago

oops.. should i be saying IR?

Intheknow says 14 years ago

just hope the casinoSSSSs don’t flop.

Huge Debt says 14 years ago

this is unlikely to be the last rights issue or fund raising, given the existing debt and the cost of funding the $6b IR. from my understanding they have only draw down a small portion of the loan for the IR abt $1.5b, and the reminder will be continue to be draw down. there’s also rumour about cost overrun. all in all, the debt should be about $7 to $8b. how many years it will take to breakeven, what’s the annual profit and cash flow are the big questions that many forgot, in the midst of the euphoria. i have no more position in this counter after selling recently.

Intheknow says 14 years ago

so fair value now is [1.2 (recent closing price before CR) x 5 + 0.8] / 6 = 1.13?

lioninvestor says 14 years ago

Hi intheknow,

Yes, that’s the theoretical ex-rights price. They used $1.19 as the last closing price which gives a theoretical ex-rights price of $1.125.

IMO, that figure is meaningless to be used as a basis for valuing the shares. More as a guide to calculate breakeven price.

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