Theoretically, the right traded on 16/8 should be price at 0.2465 if the mother shares is 13.7. If you hold 1000 Aeoncr, you can pay & subscribe 2000 ICULS. And if converted to mother shares you will get 181.98 mother shares. The different is the profit if you sell the shares at 13.7 which is about Rm 493.17. Rm493.17/ 2000 right = 0.2465. The right price should not be far from the profit you will get from the conversion , bcos if there is any different , a trader can arbitrage and earn risk free return.
Hi Guys, just to double check with you, it is divide or multiply? because based on my understanding is we pay RM1.00 for every ICULS we should be subscribing for RM1per unit and it pays 3.5% interested on the RM1.00........
in the future should we convert ICULS to mother share is RM10.99 per unit. E.g if one person owns 1,000 mother share now, he will have 2,000 ICULS and pay RM2,000 for it with 3.5% interest on it for the next 3 years until 2020.
Should we convert now or in the future of the ICULS the price of conversion is RM10.99 regardless what price it is now or the future. Therefore, its 2,000 units of ICULS X RM10.99 = RM21,980 right?
Yes Rockeboy91. Next question, should you ask " what happen if you don' t have so much amount of money to pick up after 3 years"? Well, the answer is your 2000 shares of ICULS will be divided by 10.99 = 181.98 of mother shares (auto) and credited into your CDS acct. Correct me if I am wrong, someone.
You don't need to pay to convert the ICULS to the common share.
If the company does well and pay greater than 3.5% DY then convert. If the company does not do well (pays less than 3.5% DY), then delay the conversion till the end of the third year.
tanbk1949 . Is it using 10.99 of iculs convert to become mother share or using RM 10.99 + 1 iculs become mother share ? sorry I am beginner . is want to make sure
my understanding of iculs is a kind of loan. after the expired, it will automatically convert to common share, by the fixed convertion rate. 1st time subcrip of right 2000LA with cost RM2000, it is equal to 181.98 shares 3yrs later. After 3yrs, 181.98shares will credit to your account. No need to pay rm10.99 for convertion.
For every right issue exercise... The share price will adjusted lower... Basically those who subscribe will not gain 'free money'... Investor pay more to subscribe and company received more $ to raise funds...
The recent drop of share price is probably because some holders sold share as they think their share will be diluted if they will not subscribe the ICULS, which this assumption is not correct. If holders do not want to subscribe ICULS, they can sell their right during 16-28 Aug and the proceed is exactly (ignore the market force on price fluctuation) the amount compensates to the dilution. No gain or loss to any parties indeed, the right issue activity is fair to every shareholders.
Exdate 11/8 is just entitles and gives shareholders the "right" to purchase or not ICULS. If shareholders do not want or no money to purchase ICULS, they can then sell the right at open market similar likes share trading. So no such dilution loss on their existing share they hold if they do not purchase ICULS.
I don't think so. If the right is sold too cheap in the open market, there will be a small group of people would like to buy the right and ICULS and then convert to AeonCR share to gain the small margin.
Other words no free lunch. This exercise not meant to make or lose money. Its dat simple. Most people dont get it cos its complex n so they over react n money goes to those who know..simple.
i surveyed some of their aeoncr customers. To my surprise aeoncr actually did not cincai issue credit. Some even kena rejected 5 times (and they still want to try). Some repaid the loan, applied the 2nd time, kena reject.
Also, aeoncr staff will personally call the customers if the payment is due soon but payment not received. This for some cases, according to customers, make a good impression that aeoncr actually want them to fulfill their promise to pay on time (despite the fact that delay in payment results in additional interest profit).
Though, i must also present the negative view. If you see their FB page, kena harrass alot. But i think some of these customers can be avoided, after all aeoncr provides value to those in need. I saw the market for motorcycle loan (mat rempit no pls) is quite good, and some of these microfinancing really help ppl.....
As for those rich guys still apply for aeoncr for some additional benefits.....if you want to talk about moat, this is it. Just buy and huat.
i just think today's customers really a bit no manner....sikit sikit complain....like the whole world owe them something like that....go visit u mobile fb page, same thing...digi...same thing....
i used to think aeoncr microfinancing, how to huat like that? But their past performance proves me wrong. If there's one counter I can bank on their management philosophy, this is it.
Alex, thanks for yr comments and investigative work. This counter is for long term holders who want to build 'a retirement fund'. I have held this share since 2010 and have no regrets. If you want to see gains in a coupe of weeks or a few months, then this is not the place to place yr cash
Alex, you can buy the ICULS because it is 2 for 1 share, mean if you have 100 units share you can buy 200 units ICULS, and it is round number lot. After that you have 3 years time to sell the ICULS at anytime if you don't convert them to share. If you convert to share, you may have odd lot.
For those who dont understand why share price drop from 12.80 to 12.52, I will show you the calculation
for example if you have 109900 units of AEONCR you will be entitled 219800 units of AEONCR-LR,219800 units of AEONCR-LR can be converted to 20000 units of AEONCR
so today open price=(109900*12.8+109900*2)/(109900+20000)=12.52
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 360 views | 2 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 11695 views | 10 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
Patrick Ngian
170 posts
Posted by Patrick Ngian > 2017-08-02 12:30 | Report Abuse
Before 10/8 you will still entitle, ex-date is 11/8