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120 comment(s). Last comment by anticonman 2019-05-27 04:14
Posted by (US/CHN trade war doesn't matter) Philip > 2019-05-19 17:15 | Report Abuse
Posted by (US/CHN trade war doesn't matter) Philip > 2019-05-19 18:01 | Report Abuse
(US/CHN trade war doesn't matter) Philip
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Posted by (US/CHN trade war doesn't matter) Philip > 2019-05-18 19:50 | Report Abuse
private placements and rights issues are never a good sign, no matter how good the marketing and storytelling can be.
I think the last time I recall QL having a rights issue was in 2014.
PCHEM has never had one.
Public bank last did one in 2014.
Topglove chose to do convertible bonds instead, something similar but with less dilution of shareholder value.
I can't recall if GKENT has every done one in recent years, but I do know they do buybacks.
Yinson did one in 2014, which was funnily enough, OVERSUBSCRIBED. Turns out if you use rights issue to pare down debt and do things properly, there will be support.
Doing any private placements or rights issue when the market is challenging is never doing the right thing by the investors. Management has to give big discounts to raise cash, and in the end the ones that lose out are the owners and minority shareholders of the company.
Malaysian investors are weird. They look down on companies that do buybacks and overly value dividend payout. They should understand context, buybacks when the intrinsic share value is low and debt paring vs dividend payout (or even borrowing money to pay a dividend) is key in raising long term value.