https://www.theedgemarkets.com/article/never-waste-crisis-airasia-founder-tony-fernandes-reminds-staff-covid19-hits-aviation-sector

@newbie300 Ngam!

@Winner128 It's a matter of time. Oil is still at its low, coupled with the dull market sentiment. The upward trend will be subtle now.

https://www.thestar.com.my/business/business-news/2020/09/11/healthy-market-correction-despite-losses The market sees upward momentum soon.

BUY now when oil price is low and market sentiment is still poor.

@micsoh PP (to acquire good assets) is the opposite of RI. Glad that we are moving forward!

No worries friend, it will shoot to 0.700, trust me!! The oil price will go up after the 2 weeks fall. We still have about 9 weeks ahead until the first tranche date!!

I am thankful that I secured 100k at 0.500 just now!

Stock is about the majority sees risk while the minority sees opportunities. Happy fishing! :)

As for now, Hibi management must come up with something to push the share price up to 0.66 or beyond.

Otherwise, this PP will be made redundant.

Not everyone thinks alike. The take home story is, hibiscus is a well managed company with no or low debts with vision. If you have holding power it is worth keeping. The share price can easily go beyond RM2 after 2022 when the oil price is usd60-70.

That said, the share price will fall after each conversion due to the dilution. But in the long term, it gets substantially higher.

@twynstar Yupp read that ystd. There may be multiple tranches, each with different conversion price. The first is on 12th November 2020.

The share price will just move up towards each tranche date to justify each fixed conversion price in order to attract more crps.

Happy buying everyone GL

@Winner128 agree!

Buy and collect before the market understands how it works.

My remisier just replied, the share price should move up to justify the 0.66 conversion price. The Hibi management has to do something about it.

@Winner128 as a matter of fact, oil will go up, just a matter of time. You are smart to collect Hibi shares at a bargain. Thumbs up!

The giant investors would be silly to buy at 0.66 with their RM1b by 12/11... Lol

How to maximise the crps when it has been stated a FIXED 3b share units with 0.66 for RM1b? It IS FIXED at 0.66 conversion price.

If retail investors keep selling it will be 0.30 soon. Will you buy at 0.66 with your RM1b?

PP is meant for fund raising.. not de-capitalising the company. And when a PP is used to buy good assets, the company prospects bloom, not doomed.

Haiyaa... so difficult to grasp meh? Lol

If I have RM1b, and if the share price falls to 0.30, I would be able to get 9 billion shares instead of the 3 billion fixed at 0.66.

The share price should move up and beyond 0.66 before the first tranche.

In case you miss it.. https://klse.i3investor.com/m/blog/humblepie188/2016-01-14-story89814-Private_Placement_Good_or_Bad.jsp

Private Placement structure generally will use PVWAP 5 days average to get the Fixed Price for Placement. What does it mean by PVWAP?



PVWAP = Previous Volume Weighted Average Price or Last 5 days Volume Multiply with Average Price



This scenario is to get the Final Agreed price for placement of new shares. Generally it will be capped at max 10% per allotment. The reason generally why a share price most likely will run up before Placement is done is because the company can raise more cash with higher PVWAP recorded.

I hope this helps :)

@micsoh it's OK as long as you and I know what's happening.. Time will tell. Many are still in the dark.

If the share price falls what good can the company get? What's the point of the private placement? The company is raising fund to buy high productivity assets. Before that can happen the company has started losing!?! Think along the line.

I wonder how to raise the RM1b if the share price does not move up or beyond 0.66. I would rather buy at 0.30 or even 0. 10 in the open market.

Oh, it may even go as low as 0.05 if my understanding is wrong... Lol

PublicInvest maintains TP at 0.650

https://www.nst.com.my/business/2020/09/623356/hibiscus-fundraising-pose-massive-impact-eps-publicinvest

If you were Hibi management, would you like your share price to fall while trying to raise RM1b? If you were the qualified investor with RM1b, if you can buy in the open market at 0.50 would you willing to buy it at 0.66?

It's not so complicated. Make life simple.

https://klse.i3investor.com/m/blog/humblepie188/2016-01-14-story89814-Private_Placement_Good_or_Bad.jsp Read to understand. It is the other way round. Why would you pay the conversion price of 0.66 with your RM1b if you can buy cheaper in the open market?

https://m.investing.com/analysis/why-oil-demand-weakness-from-china-wont-last-200537004 Oil prices are affected by DJI too. The US Presidential Election on 3rd November may influence the US market in the coming weeks.

Let the management worry about it. They have to come up with something to push the share price up before 12th November. With the oil price at the lows these 2 weeks I am interested in seeing how they turn the table around.

All O&G goes down due to oil price going down again. Sapura Energy is down 9% too.

Every private placement move will make the share price fall in the short term as not everyone has the same capacity to hold.

As long as you have enough extra capital to buy more and wait for its appreciation.. :) I never go for short term investment.

PublicInvest has maintained its "neutral" call on Hibiscus with an unchanged target price of 65 sen.

BNM announced no opr cut.

https://www.thestar.com.my/business/business-news/2020/09/10/hibiscus-set-to-bloom-by-raising-rm2bil

Back to the reality of life=serving loans. Next time, buy undervalued stocks with strong fundamentals LOL

Goreng counter. Up down fast and furious!

Counters in red due to the market sentiment. Gloves suffer the most!

For sure it is NOT a bad news. The question is how to make it happen and turn it into a good news LOL

As far as we are concerned, this is not a bad news even if it cannot work out to be a good news. No setback on the share price.

But if the management is aggressive it will turn out to be a good news for us LOL

@Newbn00b Let the management worry about it LOL... we just sit back and relax.

@Winner128 I meant it has to make the cprs attractive enough to call it a premium.

Reminds me of a Hermes Birkin waiting list, only a VVIP can secure one... just saying LOL

Bukan cukup kalau 0.66. To make it a 1:1 conversion per share it has to be higher if not 0.90 (10% premium). Or anywhere near 0.90.

Think in the investor's shoes. Don't forget that each qualified investor must send in application for approval lagi. If it is not a good deal why making the entry so difficult?

Be patient. The management will be more concerned if the share does not move up. It must be appealing to attract investors.

Goreng or no goreng, diversifying the business portfolio is a good thing for any company. It tells us that they are working on every bit to make things work eventually. You don't often see a company striving to survive so badly like AA. It is a hard time for aviation. But AA is the only airline diversifying into other platforms so far.

It will surely survive!

The date of its first tranche is 12th November 2020. Share price must go up by then to make the deal attractive.

To attract potential investors, they may have to boost the share price up. Not every qualified investor who is interested will be approved the application. What a premium!

Nevertheless, expansion of business is GOOD news when all the viables are ADVANTAGEOUS. The timing is right!

We adults sometimes choose to complicate matters LOL

To simplify the issue, you only pay a PREMIUM price for something BETTER!

That shows you the direction Hibi is moving towards!

In other words, the direction of the share price.

Guess what? I was enlightened by my 14 years old daughter on this :) Never underestimate the intellectual ability of children.. Lol

@Jack Khan That's exactly my point! That's why investors must pay a premium. That's the reason the share price will go up to make it worthwhile. You illustrated it well.

Unlike RI, share price goes down.