My take on ICPS investment strategy:
- look for counters with growth potential and issuing ICPS for investment, not paring down debts.
Example 1: AGES ICPS for exchange of a parcel of development land measuring 7,395 square metres identified as Lot No. PT 129 held under Title No. H.S.(D) 18991, Section 1, Town of Batu Ferringi, District of Timor Laut, Pulau Pinang.

Example 2: Focus D ICPS for investment JV with RSGF for development of  'The Arch at Jalan Tun Razak, KL'.

- low investment low risk. RM10k will get 1M ICPS of 1 sen. Please see my article link below for example.
 https://klse.i3investor.com/blogs/BLee_AGES/2021-03-08-story-h1542067522-AGES_ICULS_The_30_Billion_of_1sen_bargain.jsp
(Note: I am not promoting AGES ICULS now due to recent AGES price slide as predicted; due to lower support price of 10 sen??)

- will mature (auto-convert) and NOT expire like warrants investment.

- 2 methods of conversion. A good example of Focus D run down from above 60 sen to less than 10 sen; conversion by cash value of 55 sen to 10 ICPS (around trading value of 1 sen).

- Anti-dilution.
Example: Ta Win. The conversion price of the outstanding ICPS would be adjusted from RM0.10 to RM0.05.
Pursuant thereto, the conversion ratio of the outstanding ICPS shall be adjusted as follows:
(i) 2 ICPS to be converted into 1 new Share; or
(ii) a combination of such number of ICPS and cash with an aggregate value equal to the conversion price, subject to a minimum of 1 ICPS, and paying the difference between the aggregate of the issue price of RM0.025 per ICPS surrendered and the conversion price in cash for 1 new Share.

Detail 1: TaWin-PA conversion calculation.

Example 2: Fintec-PA. The conversion price of the ICPS would be adjusted from RM0.16 to RM0.11.
 Pursuant to the Adjustment, the conversion price of the ICPS will be revised from RM0.16 to RM0.11.
The notice to the holders of ICPS (setting out the details of the Adjustment) was despatched on 9 December 2020.
This announcement is dated 24 December 2020.

Detail 2: Fintec-PA conversion calculation

I am covering more on the pros, it could be more pros and cons; please contribute for our learning destination. Please also correct me if I have made some wrong interpretation. For information, I am in negative territory in most of my ICPS investment as the market in bearish mode. I am investing in long term as most of my ICPSs investment in million shares of few sen.

Happy Trading


Disclaimer: The above opinion does not represent a buy, hold or sell recommendation; just a personal opinion and for sharing purposes only. Any offences and errors are unintentional; my apology in advance.