Rcps info just announced. It can be redeemed back the cash of RM 500 just after Rcps list ( 3 mths ). But amprop also did mention tat , they only provide the service to give back the money B4 30 days of maturity ( redemption of RM 500 ).
Just an opinion of my little knowledge, RCPS can be treated like an option, given it has the ability to convert to share using 2 RCPS in 5 years time, (draw the tree diagram of 4 AMPROP - 2 RCPS - 1 new share converted) effectively, it is a European call option with exercise ration of 4 to 1 at an exercise price of 0 (since we don't have to pay a single cent for the new share). Currently, the closest match to a 5 years call warrant in the market for a 5 years exercise 1 to 1 ratio option at current par value is at least trading at RM0.60 per option in the market with average of RM 0.10 of time value of money per year. If one really go redeem back the cash of RM 500, seems like the person will be effectively losing all the premium of at least RM0.60 per option.
All Sifu, isn't that what we should be looking for? opinions?
If above hold true, RCPS should be listed at least higher than the RM0.50 per share... which converting it to cash is a bit of disadvantage unless you think the conversion money can earn more than the premium offered.
So it's quite clear the first 2 months it won't be below 50 cents after which you guess, if the mother still below RM 1.0. It looks like retailers will cash out leaving the majority share holders keeping the RCPS.
The RCPS are issued pursuant to the bonus issue of 296,816,420 RCPS at an issue price of RM0.50 per RCPS on the basis of one (1) RCPS for every two (2) existing ordinary shares of RM0.50 each in Amcorp Properties Berhad (“AMPROP” or the “Company”) (“Shares”) held at 5.00 p.m. on 26 September 2014.
The RCPS shall carry a non-cumulative preferential dividend rate of two (2) sen per RCPS per annum, being 4% per annum calculated based on the nominal value of the RCPS, to be declared and payable annually in arrears, subject to availability of distributable profits.
The RCPS shall be redeemable at the option of the holder in whole or in part at RM0.50 per RCPS, by submitting a redemption notice at any time commencing from the market day immediately after the Issue Date, and expiring three (3) months from the Issue Date (both dates inclusive).
The RCPS shall be redeemable in whole or in part at the option of the Company, at any time from the first (1st) anniversary of the Issue Date up to the Maturity Date (both dates inclusive), unless previously converted, by giving not less than 30 days’ notice in writing to the holders of the RCPS. Redemption shall be made at a redemption price of RM0.50 per RCPS aggregated with any unpaid declared dividends. For the avoidance of doubt, the last date for service of the notice of redemption by the Company shall fall on 30 days prior to the Maturity Date.
The RCPS shall be convertible, at the option of the holder, at any time from the first (1st) anniversary of the Issue Date up to the Maturity Date (both dates inclusive), without the payment of additional consideration by the holder thereof, into such number of new fully-paid Shares as is determined from dividing the issue price of the RCPS by the conversion price.
If at any time the aggregate nominal value of the RCPS outstanding is less than 10% of the aggregate nominal value of the original issue size, the Company can invoke mandatory conversion of all the remaining outstanding RCPS without the payment of additional consideration by the holder thereof, into such number of new fully-paid Shares as is determined from dividing the issue price of the RCPS by the conversion price.
All outstanding RCPS at the Maturity Date shall on the market day immediately following the Maturity Date, be automatically converted into new Shares at the conversion price.
Any fractional entitlements of new RCPS pursuant to the bonus issue of RCPS and new Shares on conversion will be disregarded and dealt with in such manner as the Board of Directors of AMPROP deems fit and expedient in the best interests of the Company.
hi all the senior here, i am new guy in share market and just start learning. Sorry to ask something out of topic here. i just bought 40000 FOCUS mother share at 0.1 today, based on the announcement http://www.bursamalaysia.com/market/listed-companies/company-announcements/1755737, how many right and warrant i will get later, and how to calculate the value. Very sorry to post this here, but i cannot find anyone who can help me and give me good answer. Thank you so much.
i think the announcement nothing related to u becoz the free warrant is for the RIGHT ISSUE only. As u bot the shares on 10/10/14, that 1 is just an ordinary shares, i think the right issue subscribe date line ( with free warrant ) is over.
Give u some advise, based on my experience , those share after the issuance of right issue, the share price always will go south, that's y the issuance always detached with free warrants.
hope this can solve ur answer.
just my 2 cts view, i just vege seller and know nothing much.
if u need to know more, just phone ur remisier and seek advise from them.
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....
Surelaughdie
318 posts
Posted by Surelaughdie > 2014-10-03 18:35 | Report Abuse
luan luan fan pi. wakakaka.