Thank you @Ahhuat888. Another question, why today reference price is 2.34? I found that last Friday closing is 2.69. What is the calculation to get the 2.34?
gark, dont understand - if existing shareholders before ex-date, they get to buy one right for rm1,65 if they have two. what if those who miss the ex-date to acuqire, buy rights? at 60sen? then the existing shareholders will be pissed big time cos rights will be cheaper like crazy
@bowman...you can choose to buy the rights at open market.
Rights is always have a small discount over mother, those that do not have capital to convert will sell and those with capital to convert will grab it at slight discount. This is how a free market works.
on 27th the rights will hit limit up 31.5 sen, not much trading expected unless...
Mother falls 30 sens or some idiot start selling...
On Monday then we can only see how much the market price the rights. I expect it to be traded at 58-62 cents.
IF you manage to grab at 60 cents, you get 8 sen FOC for every share convert, that is 2.5% free money and only takes 1 week to convert. This is how stock arbitrage works. I also expect large holders to shore up the mother share when listed, to build confidence on OR price.
dextronium, so for existing shareholders with two lots of MBSB, they only pay 1.65 to convert to one share. Otherwise, those who dont, then buy rights from market at its fair value, and pay 1.65 to own one mbsb? in either case, the shares will be diluted in value, as i see it.
gark, that's an interesting proposition - but if someone who doesnt need the money, and has many rights, he may be selling it just for the heck of it.. hahah
can anyone explain how i am going to buy the right issue to me? am i paying 1.65 without additional? i have to queue? sorry ... tis is my first time, getting confuse now ...
dear eddie if you are an existing shareholder, you will be offered the subscription of right issues. You have to pay RM1.65 to convert every right issue to become MBSB share. But if you are not an existing shareholder, the right issues will be on market from tomorrow. Thanks.
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....
dextronium
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Posted by dextronium > 2013-12-23 14:25 | Report Abuse
Newbie, rm1.65 for every right issue to be converted to share.