Tgk la announcement tu properly kan it is clearly stated d RI is for loan disbursement purpose
CPEEC dah paid portion nya dah sbb tu at the moment it is 26% : 74% shareholdings
It is timing
JAKS EPC profits originally meant for tis share subscription must b coming in later at tail end of construction tat why x sempat to b used for tis share subscription
Tapi bank loans kena draw down dah mmediately to finance further construction works
It is a very common requirement for banks to ask shareholders to top up share capital b4 they make loan disbursement
Profits from EPC not coming in yet not coming in in time
This management really gt problem, from 2010 talking about power plant.. Even now also still talking about power plant and keep ask money from investor instead of using company earning. No hope for jaks. Another failure power plant project. Gap down 0.70
It is not true by saying market price has to trade above RM1.00. No one says that the rights issue price will be fixed at RM0.40, it can be fixed at any price, above or below RM0.40. In the circular, it was stated as "illustrative issue price", meaning, in order to show the calculation, they ASSUME issue price to be at RM0.40. This is just an illustration, not a guidance.
It can fall below RM1 and rights issue price to be fixed at a price lower than RM0.40. Please take note.
From DK66's write up:
In order to give at least 50% discount to TERP, the market price has to trade above RM1.00 during price fixing in order to give 50% discount.
(RM1.00 x 4) + (RM0.4 x 2) /6 = RM0.80 (TERP) => 50% discount => RM0.40 (Right Issue Price).
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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....
janet_roo
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Posted by janet_roo > 2020-05-24 23:09 | Report Abuse
Hi DK66, pls add me into the group thank you