annmixSorry maya.. i already made profit n not play this counter when it was at 33-34, i feel sorry for this counter too, anyway i hv perisai n alam n they are in red now, if u too free u can go and troll there also.. i still not respect u here coz plain shouting with no facts, i wonder if u really trade ! All oil n gas counter are bad now, now only particular thheavy
viper88Price drop back to last year Dec low. RI proposal doesn't seems attractive base on recent sell down price. EGM next week, not yet finalize/approve on the renounceable shares RI info.
supernovavery HEAVY counter, suffering 9% loss, cut now or hold
viper88Yeah.. Heavy handed play. Company need money but based on the current traded price and sell down, its seems not many are interested/ wanted to pick/subscribe the RI. Those who buy and plan to trade the OR renounceable RI also difference by only 0.02 sen currently and need huge capital/ & vol buyer to absorb to get profit.
The sell down also allow big shareholders to absorb at lower price but they still need money to pick up/sell the Renouceable right. Investor might as well buy after ex-right. Price weakness alwys favours big and long term players.
Just wonder how THHEAVY goin to raise fund if no investor want to buy or subscribe for the RI unless they themselves subscribe and later sell back when price move up...
Renounceable rights are rights to purchase a set number of shares in a company at a discounted price, offered to existing shareholders when a company wants to raise more capital. The practice of offering shares at a special price to people who hold stock in a company is known as a rights issue, and is done to provide people with an opportunity to maintain their proportional ownership in the company. In the case of renounceable rights, the rights are transferable and people can choose to sell them if they do not want to exercise them.
When a company offers renounceable rights, it evaluates the number of shares people already hold and the current price for shares on the open market. It offers a proportional amount of shares in the new issue at a lower price. Shareholders who choose to take advantage of the offer are able to buy shares to compensate for the dilution that occurs when new shares are issued. They can also opt to sell the renounceable rights if they do not want to exercise them, or choose to pass altogether, even though the value of their existing shares will be diluted because the overall number of shares in the company is going up.
There are markets for renounceable rights and people can usually find buyers. For members of the trading public, buying such rights can be advantageous as it allows them to access a new issue before other members of the public, at a lower price than the company's shares trade for on the open market. Value of such rights varies, depending on a number of factors, from the total discount offered to the company's current financial position. When purchasing the rights, people weigh the cost of the purchase of the right itself along with the stock.
Based on the Conversion Rate and the par value of the ICPS-i, the conversion price derived is RM0.25 for every new THHE Share (“Implied Conversion Price”). Based on the assumed entitlement basis of 16 ICPS-i for every 15 existing THHE Shares and the 5-day VWAMP of THHE Shares up to and including the LTD of RM0.3966, the Implied Conversion Price represents discounts of approximately 22.84% and 22.10% to the TERP of RM0.3240 and RM0.3209 under the Minimum Scenario and Maximum Scenario respectively.
In determining the discount to the prevailing market price, our Board has taken into consideration the level of discount that is likely to encourage broad participation in the rights issue exercise by our Entitled Shareholders, while at the same time enabling our Company to raise the required funds. Our Board deems that the discount to the TERP, which is in line with the range of discounts observed in precedent rights issue exercises, is reasonably attractive to encourage shareholders’ participation in the rights issue after taking into consideration the prospects and future growth of our Company. ==================================================================== 0.3966 - high
0.3240 & 0.3209 - 22.84% and 22.10% discount from the right issue price at 0.25
Base on current closing market price at 0.27... its just doesn't have much discount or attractive to encourage shareholders to subscribe for the RI..