for this reverse take over, if you have 10 SH shares you will get 1 RH shares. RTO price and IPO price for each RH shares is RM1.60. If you buy SH now at 17 sen meaning you paid at a premium to RTO and IPO price. So price after listing of more than 1.70 only will give you profit.
usually co aim for listing is to share the risk rather to share the profit. if i hv got a 100% profitable n sustainable biz, why would i go for listing
ok dear investors.......this is the explanation about RTO of SH and Ranhill. The meeting on 6 Nov. called is to get the approval from members for the RTO. After comletion of rto in january 2016 SH will be delisted and Ranhill will be listed instead. Prior to the listing of Ranhil these process will taken place......
1. About early or mid dec. 2016..shareholders of SH will get 1 sen special dividend . 2. Mid december, after dividend paid, SH will be suspended for the purpose of distribution of 1 Ranhil share for every existing 10 SH shares . 3. Placement of new Ranhill share to institution and cornerstone investors. 4. Offer of new Ranhill share to retail investors . 18m shares will be offered for public by ballot expected at RM1.60 per share. 5. For every Ranhill share owned resulted from conversion of SH share, you will be offered new Ranhill shares at the ratio of 1 to 1 at the price of expected RM1.60 depending on on book building process to instititions. This is what quite interesting. If you are interested to take part in the IPO of Ranhill , not need to apply from institution or public offer. Buy SH shares before delisted, expected in mid dec. So if you buy 10,000 unit SH share at 16 sen now , your cost to owned 1,000 unit of Ranhill shares after conversion (1 to 10 conversion) is RM1.60 , same as IPO price . So investors who already bought SH at below 16 sen meaning you will get Ranhill shares at discount to IPO price. But actually because of 1 sen dividend that will be paid, if you buy at 17 sen now before dividend actually your cost for 1 Ranhill ( 1000 units) shares is also RM1.60.
SUGGESTION..........for financial year 2014 EPS for Ranhill ( taking into account of expanded 941m shares) is about 10 sen. At IPO price of RM1.60......PE is about 16....very very reasonable for a utility company. Malakoff was offered at PE of 26 during listing. I won't sell my SH shares and plan to take part in this RRRRRRTTTTTTTOOOOOOO. My cost is for sure below 16 sen , at a discount to IPO price........... Good luck.........
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
ruslimz
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Posted by ruslimz > 2015-07-20 23:29 | Report Abuse
for this reverse take over, if you have 10 SH shares you will get 1 RH shares. RTO price and IPO price for each RH shares is RM1.60. If you buy SH now at 17 sen meaning you paid at a premium to RTO and IPO price. So price after listing of more than 1.70 only will give you profit.