Can someone explain to me what the below mean? Sorry, trying to learn here.
RESTRICTED OFFERING OF UP TO 945,000,132 UNITS IN IGB COMMERCIAL REAL ESTATE INVESTMENT TRUST ("IGB COMMERCIAL REIT") ("UNITS") COMPRISING: (A) RESTRICTED OFFER FOR SALE OF UP TO 378,000,053 UNITS ("ROFS UNITS") ON A NON-RENOUNCEABLE BASIS TO ENTITLED SHAREHOLDERS OF IGB BERHAD ("IGB") ON THE BASIS OF TWO (2) ROFS UNITS FOR EVERY FIVE (5) ORDINARY SHARES IN IGB HELD ON THE ENTITLEMENT DATE AT THE PRICE OF RM1.00 PER ROFS UNIT; AND (B) DISTRIBUTION-IN-SPECIE OF UP TO 567,000,079 UNITS ("DIS UNITS") TO BE DISTRIBUTED ONLY TO ENTITLED SHAREHOLDERS OF IGB WHO HAVE SUBSCRIBED FOR THEIR ENTITLEMENTS TO THE ROFS UNITS ON THE BASIS OF THREE (3) DIS UNITS FOR EVERY TWO (2) ROFS UNITS SUBSCRIBED, ("RESTRICTED OFFERING").
Say if you have 1000 units of IGBB before 3 June 2021, you are offered 1000 units of IGB Commercial Reit (new and will be listed in mainboard in August) for RM400. But for public offering, it will be RM1000 for 1000 units shares.Got it?
Sorry, need to ask about the corporate action again. As a shareholder of IGBB, what do I need to do to accept the offer? Do I have to fill up any form to subscribe and pay for the shares offered to me?
So for every 1000 IGBB shares (assuming I bought it at RM2,800 prior to ex-date), I can buy 400 IGBREIT shares (by paying RM400). And by buying the 400 IGBREIT, I will get another 600 IGBREIT shares for free.
So my total cost is RM3,200
Effectively, I will end up with a) 1000 IGBB shares (now valued at RM2.100) b) 1000 IGBB REIT shares (now valued at RM1,700)
My total market value is now RM3,800. So I gained about 15% from this corporate action???
Doubt IGB cReits wud hav similar prc w Igbreits. As d former is very much less popular than d latter, oso d former is an entirely new listing vehicles, no proper listed track records b referred thus far.
The acceptance offer form for the ROFS of this Commercial REIT can only be delivered manually only - unlike others like rights issue, DRP etc which can be done online where purchase of bank draft and revenue stamp could be dispense with.
Good news. There was immediate response from Bursa2U : " ....we have escalated the email to our department for their further action. The Exchange will initiate all necessary enforcement actions should there be any breach of Listing Requirements",
IGB berhad braves the rough and tough market for office real estates. I believe it says something about the underlying asset quality. There is no retail IPO but only through the current routes (buy 2 free 3) for retail investors, perhaps fearing of under subscriptions? I believe eventually the big part will be offered to EPF and KWAP, both are the current major shareholders of sister REIT, IGBREIT.
The future road map for IGB points to this. They will finally list their final part in their portfolio -- hotel assets --as REIT too, may be after 5 years from now. Eventually the parent IGBB itself will be delisted. There is little merits to be listed as such an illiquid stock. What is special about IGBB is that almost all of their assets are of top quality, including the precious land they own in London.
No need thanks. Do not expect IGBB to surge up suddenly, it is not a goreng stock. It is a fundamentally sound company with deep values and strong cashflows. Sooner or later the market will realise its value.
Potential catalysts are: 1) a strong set of quarterly result in 2 weeks time and a decent interim dividend plus a special dividend using part of the proceeds from the UK land disposal. 2) receipt of remaining disposal proceeds from the proposed disposal of UK land for RM550 million. In its Q4FY2021 result, IGBB received a total of RM338.569 million from disposal of a joint venture. It is not clear to me if this disposal of joint venture refers to the 50% joint venture in the UK Bkackfair land. If it is, there should be a remaining disposal proceed of RM211.4 million to be received by IGBB. Even half of this remaining proceeds is to be declared as special dividend, we could expect a special dividend of at least 10 sen per share.
3) Continued strong footfalls to IGBB shopping malls to support rental revision and higher occupancy rate in its Mid Valley Southkey Mall in JB. These would bring the timing of injection of Mid Valley Southkey into IGB REIT closer to fruition once IGBB achieves the required valuation for Mid Valley Southkey injection.
4) Continued rebounds in its hotel business to achieve back steady high occupancy rates and potential creation of a new hospitality REIT to house all its hotels
5) Successful development and commercialisation of its new quality office buildings North Tower and South Tower at Mid Valley Southkey and potential injection into IGB Commercial REIT
6) Successful launch of 18@Medini quality housing project in Johor
7) Any plan for development of new Mid Valley megamall brand in other states
IGB Bhd has appointed Tan Boon Lee as group chief executive officer (CEO), succeeding Datuk Seri Robert Tan Chung Meng effective Jan 1, 2023.
Robert will remain with IGB in the role of non-independent non-executive director to facilitate the change in leadership during the transition.
Boon Lee, who is currently the deputy group CEO, holds a Bachelor of Economics from Monash University, Australia, and a Master in Business Administration from Cranfield School of Management, United Kingdom.
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....
Teo Cher Ming
Posted by Teo Cher Ming > 2021-04-14 12:41 | Report Abuse
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