Looks like there is confusion. Some say tomorrow last day cum distribution, some say tomorrow ex distribution.
Think the kongsi maybe confuse also, that' s y words like "
expected last date" were not updated.
What a joke!
ysh2006 ( Date: 07-Sep-2020 11:26) Posted:
| SCI ex distribution of SMM is tomorrow...any idea SCI will drop how much tomorrow ? |
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SCI ex distribution of SMM is tomorrow...any idea SCI will drop how much tomorrow ?
If continue go down...holders loss much money...Temasek can buy cheap from market...
alleyboy ( Date: 24-Aug-2020 09:54) Posted:
I will just let it pass. Dont make money sense to sell the Rights.
uiop1223 ( Date: 24-Aug-2020 09:08) Posted:
| Well.. u need to pay commission to broker and trading fees tk sgx. U probably incur a loss. Btw, now no one bid even at $0.00 |
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I will just let it pass. Dont make money sense to sell the Rights.
uiop1223 ( Date: 24-Aug-2020 09:08) Posted:
Well.. u need to pay commission to broker and trading fees tk sgx. U probably incur a loss. Btw, now no one bid even at $0.001
alleyboy ( Date: 24-Aug-2020 08:58) Posted:
| OK. I understand wat Octavia info. Now if i decide not to subscribe the Rights, i therefore would have to sell my 5000 Rights in open mkt. But last trading was 0.001. Tat means after selling the Rights i only get S$5.00?? |
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omg how come got 2 threads running? no wonder i cannot find my post. smm chat also got demerger huh??? should consolidate
can someone help ? don' t understand this whole recapitalsation of smm and demerger from parent sci.
smm will undertake a renounceable underwritten rts issue and sci has plans to subscribe up to $1.5b of rights shares to set off smm' s $1.5b outstanding loans under
the subordinated credit facility provided by sci last year
is it given free to sci and then sci gives 427 - 491 smm shares to sci sh ? beside this what else sci get ? sci lend money to smm and then take back ... quite wu liao lei
If you dont take up, temasek will sapu all up anyway dont worry it will never underscribed... Is whether you want to follow temasek or not...
Joelton ( Date: 24-Aug-2020 09:24) Posted:
Sembcorp Marine shareholders must now decide on rights takeup
They have to consider 3 options: do nothing sell their rights or subscribe to the issue
THE experience of the Securities and Investor' s Association (Singapore) - or Sias - is that when companies announce complex deals, many small shareholders are often in the dark as to what they have to do and the timeline they have to follow.
This came to light recently during a capital raising exercise by Singapore Airlines (SIA) that involved an issue of new shares and mandatory convertible bonds.
Some shareholders thought that their responsibility ended once they had voted at the extraordinary general meeting (EGM). They were mistaken - if there is a rights issue involved, and if it has been approved at EGMs, shareholders must then decide whether to subscribe to the rights, or sell their rights, or let the offer lapse.
Sias also encountered instances of investors who bought the rights in the open market and then failed to complete the process by actually paying for the rights, ie they did not subscribe to the shares and therefore wasted money buying the rights in the first place.
Since the SIA issue in June, another relatively complicated corporate action has been proposed - the recapitalisation of Sembcorp Marine (SMM) and its demerger from parent Sembcorp Industries (SCI).
This deal has already been approved but as far as SMM shareholders are concerned, there is still more that needs to be done.
It is perhaps timely that Sias helps clarify as simply as possible what is at stake.
What do SMM shareholders need to think about now?
For each SCM share owned, shareholders are being asked to pay S$0.20 per share to receive five more, new shares. They have to consider three options:
a) Do nothing. There is no cash outlay but those who let their rights lapse will then see their stake diluted when the exercise is completed.
b) Sell their rights. For those that do not want to pay the total price of S$1 for five shares, they can sell their rights in the market, so this option results in cash inflow. This is possible because the deal is a " renounceable" rights issue, which means shareholders can renounce or surrender their rights as they are under no obligation to take up their entitlements.
The rights appear on the Singapore Exchange' s website as " Sembcorp Marine R" and last Friday, after three days of trading, ended the week at S$0.001. Note that SMM' s shares ended the week at S$0.205, which means the rights at most are worth S$0.005 (S$0.205-S$0.20).
In other words, the rights are currently trading at a very small discount because anyone buying them now would incur a total cost of S$0.201 per share versus the market price of S$0.205. Note that because of the size of the offer - five shares for every one - the volume done in the rights is very high every day. As the rights have an expiry date, the value of the rights will fall closer to the expiry date.
c) Subscribe to the issue. This involves cash outflow and would entail paying SMM S$1 to get five new shares for each share currently held.
This option would be suitable for a shareholder who has faith in SMM' s long-term future.
What is the outlook for SMM?
After the rights issue and the distribution of SMM shares to SCI shareholders is completed, Temasek Holdings (currently the single largest shareholder of SCI) will become a direct and significant shareholder of SMM with a stake of more than 30 per cent and up to 58 per cent. Temasek is sub-underwriting up to S$600 million of the rights issue, and SMM said it sees Temasek as a strong shareholder that will support SMM' s strategy and future growth. As at June 30, 2020, SMM had a net order book of about S$2.2 billion. It has had no cancellations since. The company has listed three strategies towards sustainable, long-term growth: diversification and expansion into new and existing markets strengthening of its yard capabilities and innovation development through investment in intellectual property, technology and solutions.
But all this hinges on a recovery in the offshore and marine sector. And no one knows how long the Covid-19 pandemic will last, or when the sector, which has been in the doldrums for several years, will recover.
The downturn, which stretches back five to six years, has hit many companies, and several have already been wound up.
For the sector' s fortunes to improve, a recovery in oil prices is needed. But increased global supply of oil and reduced demand because of the virus pandemic has helped keep a lid on oil prices for several years now. How soon or when it will turn around for the better is difficult to predict.
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Sembcorp Marine shareholders must now decide on rights takeup
They have to consider 3 options: do nothing sell their rights or subscribe to the issue
THE experience of the Securities and Investor' s Association (Singapore) - or Sias - is that when companies announce complex deals, many small shareholders are often in the dark as to what they have to do and the timeline they have to follow.
This came to light recently during a capital raising exercise by Singapore Airlines (SIA) that involved an issue of new shares and mandatory convertible bonds.
Some shareholders thought that their responsibility ended once they had voted at the extraordinary general meeting (EGM). They were mistaken - if there is a rights issue involved, and if it has been approved at EGMs, shareholders must then decide whether to subscribe to the rights, or sell their rights, or let the offer lapse.
Sias also encountered instances of investors who bought the rights in the open market and then failed to complete the process by actually paying for the rights, ie they did not subscribe to the shares and therefore wasted money buying the rights in the first place.
Since the SIA issue in June, another relatively complicated corporate action has been proposed - the recapitalisation of Sembcorp Marine (SMM) and its demerger from parent Sembcorp Industries (SCI).
This deal has already been approved but as far as SMM shareholders are concerned, there is still more that needs to be done.
It is perhaps timely that Sias helps clarify as simply as possible what is at stake.
What do SMM shareholders need to think about now?
For each SCM share owned, shareholders are being asked to pay S$0.20 per share to receive five more, new shares. They have to consider three options:
a) Do nothing. There is no cash outlay but those who let their rights lapse will then see their stake diluted when the exercise is completed.
b) Sell their rights. For those that do not want to pay the total price of S$1 for five shares, they can sell their rights in the market, so this option results in cash inflow. This is possible because the deal is a " renounceable" rights issue, which means shareholders can renounce or surrender their rights as they are under no obligation to take up their entitlements.
The rights appear on the Singapore Exchange' s website as " Sembcorp Marine R" and last Friday, after three days of trading, ended the week at S$0.001. Note that SMM' s shares ended the week at S$0.205, which means the rights at most are worth S$0.005 (S$0.205-S$0.20).
In other words, the rights are currently trading at a very small discount because anyone buying them now would incur a total cost of S$0.201 per share versus the market price of S$0.205. Note that because of the size of the offer - five shares for every one - the volume done in the rights is very high every day. As the rights have an expiry date, the value of the rights will fall closer to the expiry date.
c) Subscribe to the issue. This involves cash outflow and would entail paying SMM S$1 to get five new shares for each share currently held.
This option would be suitable for a shareholder who has faith in SMM' s long-term future.
What is the outlook for SMM?
After the rights issue and the distribution of SMM shares to SCI shareholders is completed, Temasek Holdings (currently the single largest shareholder of SCI) will become a direct and significant shareholder of SMM with a stake of more than 30 per cent and up to 58 per cent. Temasek is sub-underwriting up to S$600 million of the rights issue, and SMM said it sees Temasek as a strong shareholder that will support SMM' s strategy and future growth. As at June 30, 2020, SMM had a net order book of about S$2.2 billion. It has had no cancellations since. The company has listed three strategies towards sustainable, long-term growth: diversification and expansion into new and existing markets strengthening of its yard capabilities and innovation development through investment in intellectual property, technology and solutions.
But all this hinges on a recovery in the offshore and marine sector. And no one knows how long the Covid-19 pandemic will last, or when the sector, which has been in the doldrums for several years, will recover.
The downturn, which stretches back five to six years, has hit many companies, and several have already been wound up.
For the sector' s fortunes to improve, a recovery in oil prices is needed. But increased global supply of oil and reduced demand because of the virus pandemic has helped keep a lid on oil prices for several years now. How soon or when it will turn around for the better is difficult to predict.
Well.. u need to pay commission to broker and trading fees tk sgx. U probably incur a loss. Btw, now no one bid even at $0.001
alleyboy ( Date: 24-Aug-2020 08:58) Posted:
OK. I understand wat Octavia info. Now if i decide not to subscribe the Rights, i therefore would have to sell my 5000 Rights in open mkt. But last trading was 0.001. Tat means after selling the Rights i only get S$5.00???
Jeanny ( Date: 22-Aug-2020 22:04) Posted:
alleyboy, please refer to the post by Octavia.
Last trading day for R on 27/08.
Last day to apply for SM rights shares @20cts - 2/09
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OK. I understand wat Octavia info. Now if i decide not to subscribe the Rights, i therefore would have to sell my 5000 Rights in open mkt. But last trading was 0.001. Tat means after selling the Rights i only get S$5.00???
Jeanny ( Date: 22-Aug-2020 22:04) Posted:
alleyboy, please refer to the post by Octavia.
Last trading day for R on 27/08.
Last day to apply for SM rights shares @20cts - 2/09
Octavia ( Date: 19-Aug-2020 14:13) Posted:
WHAT YOU MUST DO WITH YOUR SEMB CORP MARINE RIGHTS
Sembcorp Marine rights will be trading on SGX today (19 Aug 2020).
There are at least 3 options you can consider. Regardless which you choose, you MUST ACT.
Please don&rsquo t repeat the SIA renounceable rights and MCBs episode previously.
If you need more information, you can refer to this where we explained what Sembcorp Marine and Sembcorp Industries wanted to do. Here&rsquo re the relevant documents from Sembcorp Marine about the offer.
To make it easier for you, these are your possible options:
Option 1: Sell
These are renounceable rights which means they will be traded on SGX. You can choose to sell them instead of paying to convert them to shares.
My guess is that the initial price would be close to $0.02 since Sembcorp Marine closed at $0.22 and the conversion price is $0.20 for each right. But of course the prices are subjected to changes due to market forces and perceptions.
How many rights will you have?
You get 5 rights for every share you own. Simply multiply the Number of Share you own by 5 to get the number of rights you have.
You can also login to your CDP account or refer to your broker&rsquo s letter (if you held the shares in a custodian account) to confirm the number.
Who should consider selling?
You should sell if you have NO intention to subscribe the rights.
At least you get back some cash. Don&rsquo t let it expire.
You have until 27 August 2020 at 5.00 pm to sell them and after which the counter will be delisted. The counter is Sembcorp Marine R (SGX:THFR).
Option 2: Subscribe
You can also subscribe by paying $0.20 to convert each right to a share in Sembcorp Marine.
If you have 1,000 shares, you would be granted 5,000 rights. You can pay $1,000 to convert the rights to shares and you will end up with a total of 6,000 shares.
If you wish to subscribe, make sure you do so within the time period!
You can pay for the conversion at the ATMs (shares held in CDP) or transfer to your broker (shares held in custodian).
The acceptance of the payments and applications starts from 19 Aug 2020, 9am and ends on 2 Sep 2020, 5pm.
Option 3: Subscribe to partial rights and sell remainder
The last option is that you can subscribe to fewer rights than you were entitled.
For e.g., you have 5,000 rights but only wish to subscribe to 2,000 rights. You can pay for the 2,000 rights ($400), and SELL the remaining 3,000 rights that you want to give up.
You&rsquo ll need to take 2 actions:
- SELL the rights which you don&rsquo t wish to convert and,
- PAY for the partial rights you want to convert within the stipulated dates.
I recommend you to do both at the same time in case you forget to do one and not the other.
Option 4: Subscribe to MORE rights
You can also subscribe to more rights than what you were given.
To do so, you can either:
- BALLOT for excess rights by paying for more rights during the application, or
- BUY more Sembcorp Marine R (SGX:THFR) from the stock market.
The advantage of the former is that you don&rsquo t need to pay additional fees (above the $0.20 conversion) for the excess rights. But it is a ballot so it isn&rsquo t guaranteed you get what you applied for.
The advantage of buying the rights from the stock market is that you would definitely get the excess rights and can convert them to shares. The downside is that you have to pay extra in this process.
Important: Please Act
The worst thing you can do in this exercise is to do nothing.
You should either sell the rights or pay for them to convert to shares.
Last Warning: The rights will stop trading on 27 Aug 2020, 5pm and the last date to pay for conversion would be 2 Sep 2020, 5pm.
Decide now and act!
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Oh yeah... Better dont sell... Just leave it... If you dont want to pick up. Alternatively, Poems has this cash plus acc, fee only 10 per transaction up to 29k trasaction. Another option to consider.
Juzztrade ( Date: 23-Aug-2020 15:51) Posted:
What I meant is shareholder who sell the renouncebale rights in open market.
vicloo ( Date: 23-Aug-2020 14:51) Posted:
| Shouldnt be, buying right just pay directly to local bank like IPO. Only fee is 2 dollars. |
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What I meant is shareholder who sell the renouncebale rights in open market.
vicloo ( Date: 23-Aug-2020 14:51) Posted:
Shouldnt be, buying right just pay directly to local bank like IPO. Only fee is 2 dollars.
Juzztrade ( Date: 23-Aug-2020 00:02) Posted:
Let say a person is holding 5000 shares in Sembmarine and he is entitled to 25,000 renounceable rights.
Selling the rights at 0.001 cent based on last Friday price is only $25.00 and still have to pay brokerage charges.
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Shouldnt be, buying right just pay directly to local bank like IPO. Only fee is 2 dollars.
Juzztrade ( Date: 23-Aug-2020 00:02) Posted:
Let say a person is holding 5000 shares in Sembmarine and he is entitled to 25,000 renounceable rights.
Selling the rights at 0.001 cent based on last Friday price is only $25.00 and still have to pay brokerage charges.
Jeanny ( Date: 22-Aug-2020 22:04) Posted:
alleyboy, please refer to the post by Octavia.
Last trading day for R on 27/08.
Last day to apply for SM rights shares @20cts - 2/09
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Many small shareholders will let the their rights vaporise in the thin air eventually. They can' t even sell due to brokerage fees, they still have to to up the differences. It means that they are technically forced to subscribe the rights at $0.20 a piece. The question is now is do you want to pay $0.20 for a piece?
Many retails are influence by market rumours such as:
1) Temasek will merge Keppel Marine and SMM or
2) Privatise SMM
Even with either 2 senario, do you think that Temasek will give a good price to SMM minority shareholders?
Juzztrade ( Date: 23-Aug-2020 00:02) Posted:
Let say a person is holding 5000 shares in Sembmarine and he is entitled to 25,000 renounceable rights.
Selling the rights at 0.001 cent based on last Friday price is only $25.00 and still have to pay brokerage charges.
Jeanny ( Date: 22-Aug-2020 22:04) Posted:
alleyboy, please refer to the post by Octavia.
Last trading day for R on 27/08.
Last day to apply for SM rights shares @20cts - 2/09
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Let say a person is holding 5000 shares in Sembmarine and he is entitled to 25,000 renounceable rights.
Selling the rights at 0.001 cent based on last Friday price is only $25.00 and still have to pay brokerage charges.
Jeanny ( Date: 22-Aug-2020 22:04) Posted:
alleyboy, please refer to the post by Octavia.
Last trading day for R on 27/08.
Last day to apply for SM rights shares @20cts - 2/09
Octavia ( Date: 19-Aug-2020 14:13) Posted:
WHAT YOU MUST DO WITH YOUR SEMB CORP MARINE RIGHTS
Sembcorp Marine rights will be trading on SGX today (19 Aug 2020).
There are at least 3 options you can consider. Regardless which you choose, you MUST ACT.
Please don&rsquo t repeat the SIA renounceable rights and MCBs episode previously.
If you need more information, you can refer to this where we explained what Sembcorp Marine and Sembcorp Industries wanted to do. Here&rsquo re the relevant documents from Sembcorp Marine about the offer.
To make it easier for you, these are your possible options:
Option 1: Sell
These are renounceable rights which means they will be traded on SGX. You can choose to sell them instead of paying to convert them to shares.
My guess is that the initial price would be close to $0.02 since Sembcorp Marine closed at $0.22 and the conversion price is $0.20 for each right. But of course the prices are subjected to changes due to market forces and perceptions.
How many rights will you have?
You get 5 rights for every share you own. Simply multiply the Number of Share you own by 5 to get the number of rights you have.
You can also login to your CDP account or refer to your broker&rsquo s letter (if you held the shares in a custodian account) to confirm the number.
Who should consider selling?
You should sell if you have NO intention to subscribe the rights.
At least you get back some cash. Don&rsquo t let it expire.
You have until 27 August 2020 at 5.00 pm to sell them and after which the counter will be delisted. The counter is Sembcorp Marine R (SGX:THFR).
Option 2: Subscribe
You can also subscribe by paying $0.20 to convert each right to a share in Sembcorp Marine.
If you have 1,000 shares, you would be granted 5,000 rights. You can pay $1,000 to convert the rights to shares and you will end up with a total of 6,000 shares.
If you wish to subscribe, make sure you do so within the time period!
You can pay for the conversion at the ATMs (shares held in CDP) or transfer to your broker (shares held in custodian).
The acceptance of the payments and applications starts from 19 Aug 2020, 9am and ends on 2 Sep 2020, 5pm.
Option 3: Subscribe to partial rights and sell remainder
The last option is that you can subscribe to fewer rights than you were entitled.
For e.g., you have 5,000 rights but only wish to subscribe to 2,000 rights. You can pay for the 2,000 rights ($400), and SELL the remaining 3,000 rights that you want to give up.
You&rsquo ll need to take 2 actions:
- SELL the rights which you don&rsquo t wish to convert and,
- PAY for the partial rights you want to convert within the stipulated dates.
I recommend you to do both at the same time in case you forget to do one and not the other.
Option 4: Subscribe to MORE rights
You can also subscribe to more rights than what you were given.
To do so, you can either:
- BALLOT for excess rights by paying for more rights during the application, or
- BUY more Sembcorp Marine R (SGX:THFR) from the stock market.
The advantage of the former is that you don&rsquo t need to pay additional fees (above the $0.20 conversion) for the excess rights. But it is a ballot so it isn&rsquo t guaranteed you get what you applied for.
The advantage of buying the rights from the stock market is that you would definitely get the excess rights and can convert them to shares. The downside is that you have to pay extra in this process.
Important: Please Act
The worst thing you can do in this exercise is to do nothing.
You should either sell the rights or pay for them to convert to shares.
Last Warning: The rights will stop trading on 27 Aug 2020, 5pm and the last date to pay for conversion would be 2 Sep 2020, 5pm.
Decide now and act!
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alleyboy, please refer to the post by Octavia.
Last trading day for R on 27/08.
Last day to apply for SM rights shares @20cts - 2/09
Octavia ( Date: 19-Aug-2020 14:13) Posted:
WHAT YOU MUST DO WITH YOUR SEMB CORP MARINE RIGHTS
Sembcorp Marine rights will be trading on SGX today (19 Aug 2020).
There are at least 3 options you can consider. Regardless which you choose, you MUST ACT.
Please don&rsquo t repeat the SIA renounceable rights and MCBs episode previously.
If you need more information, you can refer to this where we explained what Sembcorp Marine and Sembcorp Industries wanted to do. Here&rsquo re the relevant documents from Sembcorp Marine about the offer.
To make it easier for you, these are your possible options:
Option 1: Sell
These are renounceable rights which means they will be traded on SGX. You can choose to sell them instead of paying to convert them to shares.
My guess is that the initial price would be close to $0.02 since Sembcorp Marine closed at $0.22 and the conversion price is $0.20 for each right. But of course the prices are subjected to changes due to market forces and perceptions.
How many rights will you have?
You get 5 rights for every share you own. Simply multiply the Number of Share you own by 5 to get the number of rights you have.
You can also login to your CDP account or refer to your broker&rsquo s letter (if you held the shares in a custodian account) to confirm the number.
Who should consider selling?
You should sell if you have NO intention to subscribe the rights.
At least you get back some cash. Don&rsquo t let it expire.
You have until 27 August 2020 at 5.00 pm to sell them and after which the counter will be delisted. The counter is Sembcorp Marine R (SGX:THFR).
Option 2: Subscribe
You can also subscribe by paying $0.20 to convert each right to a share in Sembcorp Marine.
If you have 1,000 shares, you would be granted 5,000 rights. You can pay $1,000 to convert the rights to shares and you will end up with a total of 6,000 shares.
If you wish to subscribe, make sure you do so within the time period!
You can pay for the conversion at the ATMs (shares held in CDP) or transfer to your broker (shares held in custodian).
The acceptance of the payments and applications starts from 19 Aug 2020, 9am and ends on 2 Sep 2020, 5pm.
Option 3: Subscribe to partial rights and sell remainder
The last option is that you can subscribe to fewer rights than you were entitled.
For e.g., you have 5,000 rights but only wish to subscribe to 2,000 rights. You can pay for the 2,000 rights ($400), and SELL the remaining 3,000 rights that you want to give up.
You&rsquo ll need to take 2 actions:
- SELL the rights which you don&rsquo t wish to convert and,
- PAY for the partial rights you want to convert within the stipulated dates.
I recommend you to do both at the same time in case you forget to do one and not the other.
Option 4: Subscribe to MORE rights
You can also subscribe to more rights than what you were given.
To do so, you can either:
- BALLOT for excess rights by paying for more rights during the application, or
- BUY more Sembcorp Marine R (SGX:THFR) from the stock market.
The advantage of the former is that you don&rsquo t need to pay additional fees (above the $0.20 conversion) for the excess rights. But it is a ballot so it isn&rsquo t guaranteed you get what you applied for.
The advantage of buying the rights from the stock market is that you would definitely get the excess rights and can convert them to shares. The downside is that you have to pay extra in this process.
Important: Please Act
The worst thing you can do in this exercise is to do nothing.
You should either sell the rights or pay for them to convert to shares.
Last Warning: The rights will stop trading on 27 Aug 2020, 5pm and the last date to pay for conversion would be 2 Sep 2020, 5pm.
Decide now and act!
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Thanks. So will this Semb Marine R be permanently listed/traded in SGX? If not, when will this counter be absorbed into the mother share i.e.sembmarine ltd?
Jeanny ( Date: 22-Aug-2020 20:46) Posted:
With one Lot, you are entitled to 5000 rights trading at 0.001 now. You are not entitled to get any free SCM rights share
but have to subscribe by paying $1k for the 5000 rights shares ie 20cts per rights share.
alleyboy ( Date: 22-Aug-2020 19:06) Posted:
| Newbie here. Lets say i have just one lot i.e. 1000 shares. I should be entitled 5000 rights shares at 20 cts per share. Wat if i dont wish to purchase the rights? Will i lose out with just existing 1000 shares |
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