Idiotbuster
JAKS: KYY's Proposal to Raise Funds - Koon Yew Yin (Comment here)
Chanteckfai
Publish date: Wed, 13 Jun 2018, 10:33 PM
As you know, the company made an announcement of the proposed selling of renounceable convertible warrants at 25 sen each to each person holding 2 shares. That means if you own 2 shares you are entitled to buy 1 convertible warrant at 25 sen. Investors reacted negatively. As a result, the share price dropped by 5 sen per share yesterday.
This morning I told my friends that I would be writing this proposal to the management of Jaks which should be better than the proposed proposal. In believing the company will implement my proposal, they started to buy to support the share price. If they did not, I believe the price would continue to fall to a lower level.
In my 50 years of experience in managing companies and looking at the stock market, I have not seen any company doing the same way to raise money for the company. By issuing warrants at a huge discount, it is sending a wrong message, telling the market the company share is overvalued.
I like to propose that the company to call a right issue of 1 share for every 10 shares held by shareholders at say Rm 1.40 per share with a free convertible warrant. Giving out free convertible warrants is like giving free cash "ang pow" because warrants can be sold immediately in the open market.
Warrants should normally be trading at a premium.
The total issued number of shares is about 500 million. If the company follow my way, the company will receive about 50 million X Rm 1.40 = Rm 70 million which is about the same amount as that from their original proposed method.
When the warrants are eventually converted into shares, there will be a further cash injection into the company of about RM 50 million.
If the company needs more money, it can call a right issue of 1 share for every 8 shares held by shareholders. In this case, the company will get more money.
I strongly believe when the company announces the withdraw of their original proposal and replace it with my proposal, the share price will go up, because investors, especially existing shareholders, will want to get 1 free convertible warrant by buying 10 shares.
I trust the board of directors will consider my proposal seriously.
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Be the first to like this. Showing 11 of 11 comments
he is a person own 21% of Jaks. lol
but... Ang Lam Poah is more important than him because Ang Lam Poah is ceo
Ang Lam Poah is good ceo, i think shareholder should not keep disturb him.
if not happy then just sell instead of make noise
empty vessel make the loudest noise
2018-06-13 22:50
HY, JAKS & SENDAI, up too much, also drop too much already. Just name me another fresh & juicy tenbagger stock. Huh huh..
2018-06-13 23:07
There's a better proposal. That is for unkle koon to loan the money to jaks directly, with interest of course. In that way, the share price will not be affected, and the company will still raise the needed funds.
2018-06-13 23:31
1. Its a simple "game". Mr. KYY should punish JAKS, otherwise in the future, other companies will continue to cheat Mr. KYY and other investors.
2. Different proposals have different risk profile.
3. However, one must notice warrant is not really free. Warrants represents a portion of the value of the future business.
2018-06-14 00:57
JAKS should proposed right issue 1:1 with the price of RM1, then it can force KYY to dig out another RM100mil and invested into the company, or force KYY to dispose his share.
If this is the case, I guess KYY will dispose his share, and share price will collapse to below RM1. Then management can buy back the share from KYY.
2018-06-14 01:09
JAKS controlling long term shareholders led by ALP are not that concerned about propping up the share price. They are more concerned about thwarting short term parasitic investors who create no value for the business but leave the company devastated after they sell out, taking their profits and leaving much pain behind. They know KYY and his tricks. That's why he is not wanted on the board of directors. This time, he is locked in for a long long time as a mere investor in JAKS.
2018-06-14 09:14
X
It is not a difficult if you want to teach KYY a hard lesson.
Everybody just sell now as Jaks share price remain relatively high compare with general market.
You can get a much better stock at 1.44
Andy Ang and his lieutenants must cooperate to depress Jaks to a lower price, say 90 sen for couple years, and not to declare any dividend.
The rest just leave to the banks doing the job.
KYY has to service margin finance interest just like what WC has being suffering for last 5 years.
Same technique was used by Yee Lee against Tabung Haji years back until Tabung Haji could no longer stand it and sold out in Oct 2007...........
2018-06-14 09:52
Sell lah! Why bearing burden and pain together with billionaire KYY?
2018-06-15 09:47
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Chanteckfai
I agree with Ang Lam Poah. Issuing warrant is good.
I disagree with kyy proposal.
2018-06-13 22:35