speakup

another scandal

2022-11-18 09:37

Mabel

Are you one of the investors who think that Irredeemable Convertible Preference Shares ("ICPS") or Redeemable Convertible Preference Shares ("RCPS") is bad for the minor shareholders?

A common misconception of minority shareholders is always the same - Dilution of share ownership which is not good.

In fact ICPS / RCPS is a good method for listed companies to grow, or as a source to secure fundings.. But you might ask - why is that so?

Take a few good companies with good business model and good management; Airasia Group Berhad ("AIRASIA") and Bumi Aramada Berhad ("ARMADA"), what is the one key item that eats away their profit?

2022-11-18 11:10

Mabel

Was it bad margins? No..

Was it bad cost controls? No..

It's this particular item - FINANCE COSTS eats up majority of their profit, or even drive them into a loss making company!

So as an investor myself, you always ask myself this question: "Blondi, do you want a loss making company, or a company that is able to raise fund consistently with no finance costs at all?"

2022-11-18 11:10

Mabel

To me, the answer is plain and simple. I hope it is to you as well.

2022-11-18 11:11

Mabel

But wait, for new investors out there, what the heck are ICPS and RCPS?

2022-11-18 11:11

Mabel

In a layman term, ICPS and RCPS is just another type of convertible warrant (unless otherwise the company's ICPS and RCPS is interest bearing itself), investors would have to pay a certain amount (conversion price, which in turn funds the company's business) to convert into mother share!

2022-11-18 11:12

Mabel

But why would they convert into mother share? One thing I'm sure is - there must be something behind for them to willingly convert the ICPS and RCPS into mother shares, and increase their shareholdings!

2022-11-18 11:12

BILLC

Limit down again on Monday if Mohaidin lose in Pagoh,,,

2022-11-18 13:13

ahbah

Enough red ink here ! Cannot tahan any longer lah !

2022-11-18 13:29

firehawk

(Excerpt from yesterday announcement)
Various discussions were held between the parties to deliberate on the option of financial instruments to be used for purpose of raising the aforementioned funds. Of the options discussed, the parties had sought to opt for the possible issuance of Irredeemable Convertible Preference Shares (“ICPS”) in DNeX Semi amounting to RM100 million to be issued to and subscribed by MIMAS (“Proposed Investment”). The Proposed Investment forms the subscription exercise that was the subject of the Subscription Agreement dated 21 January 2022 entered between DNeX Semi, MIMAS and DNeX (“SSA”) by which MIMAS would become a 33.33% shareholder of DNeX Semi in return for a payment of RM100 million. The rights of the DNeX Semi and MIMAS as shareholders was to be regulated by the Shareholders Agreement dated 21 January 2022 entered between DNeX Semi, MIMAS and DNeX (“SHA”).
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The SSA and SHA were not publicly revealed, hoewever, DNex could be at the better stand, after all, the Notice of Arbitration was issued and served by DNex to MIMAS, not the other way round ..... my personal opinion is, DNex performs responsible manner to the dispute by seeking clarification on the Asian International Arbitration Centre Arbitration Rules ..... GCP /MIMAS is still their 40% partner, DNex wants to settle the dispute in good manner ......

2022-11-18 13:57

arv18

already up from 7 sen.

don't be too greedy. better take some profit.

2022-11-18 14:41