Wednesday, December 27, 2017

Company Warrants Expiring in 2018 - Actions Needed

I need to remind myself all the outstanding company warrants that are expiring in 2018 in my portfolio which I will need to take action. I will update this list accordingly as I go along so that I won't forget about them.

CHINA MEDW180329, Expiry Date: 29 Mar 2018, Exercise price = $0.005, Conversion ratio 1:1 - Warrants expired worthless.
VIKING W180425, Expiry Date: 25 Apr 2018, Exercise price = $0.13, Conversion ratio 1:1 - Warrants expired worthless.
CHINAGAOW180918, Expiry Date: 18 Sep 2018, Exercise price = $2.00, Conversion ratio 1:1 - Warrants expired worthless.
ISDN W181110, Expiry Date: 10 Nov 2018, Exercise price = $0.60, Conversion ratio 1:1 - Warrants expired worthless.
NTEGRATORW181123, Expiry Date: 23 Nov 2018, Exercise price = $0.01, Conversion ratio 1:1 -Warrants expired worthless.



Blogger quek keng joo said...

Hi Ghchua,

Can you help me to understand slightly better about rights issue. I do not own any mothershare, but is planning to buying the rights in the market. Can I know what will happen when I buy the rights from the market? Will that be traded as a normal share in the future and dividends will be received like a normal shareholder? At the same time, would also like to check on where will I be able to get into buying the rights entitlment from the market (via brokerage or ATM?)

9:47 PM  
Blogger quek keng joo said...

Thank you!

9:54 PM  
Blogger ghchua said...

Hi quek keng joo,

If you had bought the nil paid rights in the market, you have to subscribe for the rights issue. Otherwise, your nil paid rights will expire worthless.

10:09 PM  
Blogger quek keng joo said...

Sorry, quite new to this. Take for instance, if I am interested in cdl h trust, how do I buy the nil paid rights? Atm? Thanks.

10:15 PM  
Blogger ghchua said...

You can buy the nil paid rights the same way as you buy your normal shares, via your brokerage account.

12:11 AM  
Blogger quek keng joo said...

Oh Okie. Thanks šŸ™‚. So after which, the subscription for the rights is done over atm ? Sorry to ask newbie questions.

1:59 AM  
Blogger ghchua said...

Yeah. After you have bought your nil paid rights, you can go ahead to subscribe for the rights issue via ATM or cashier's order. You could also apply for excess rights shares as well.

4:16 AM  
Blogger quek keng joo said...

Many thanks. šŸ™‚

5:06 AM  
Blogger Sunny said...

Shifu Chua

Are you going to have some the biggest IPO this year? Its for income but the future may not be that great.

9:23 PM  
Blogger ghchua said...

Hi Sunny,

Nope. I won't be applying for Netlink Trust IPO.

11:47 PM  
Blogger quek keng joo said...

May i find out why you are not applying? Valuations are too high? I know PE is about 39.

5:53 AM  
Blogger ghchua said...

Hi quek keng joo,

Not really about PE as you might have understood, business trusts are heavy on assets and their depreciation will eat up accounting profits. You should look at its yield and debt level instead. That is, whether they can grow the distributions going forward and amount of debt in their balance sheet. Also, whether they intend to do any M&A which might mean cash calls in the future.

Reason that I am not applying is because it is a big issue and therefore I might not get much even if I applied. Also, the potential upside when it is listed might not be high. I will monitor it closely after it started trading and see how it goes.

9:25 PM  
Blogger quek keng joo said...

Thks. Learnt something. Akin to keppel infra trust I guess.

9:31 PM  
Blogger ghchua said...

Hi quek keng joo,

Do take not that business trusts pay dividends out of cash flow, not accounting profits. Which means, they can be loss making but still pay out dividends. So, PE doesn't really makes a lot of sense for business trusts.

Another reason why I am not applying for Netlink Trust IPO is because they have priced the units at the lower end of the indicative range. Which means, the book building process had been done and placement might not be well taken up. Which is an avoid for me as there might be some selling pressure upon listing since it is a big IPO.

Anyway, let's wait and see how it performs. I might be wrong though so don't take my words for it. Do your own research.

4:18 AM  
Blogger quek keng joo said...

Thanks for your reply :)

4:46 AM  
Blogger Ryan said...

congrats on u UE :)


6:05 AM  
Blogger Sunny said...

UE is being offered at $2.6 each, it is really little. What is a good price to let go our shares if the buyer is willing to raise?

BTW, any logistic companies shall we have a look? I only know of Singpost, Cache, PTC, how about LHN? Beside Singpost, who else is more related towards retail consumers order storage and delivering?


7:15 PM  
Blogger ghchua said...

Hi Sunny,

On UE, I think the offeror did not pay a premium because they do not intend to take UE private. Anyway, I think the market had spoken today. I will not be accepting the $2.60 offer though unless they raise it or there is a completing offer. UE should be worth at least $3 in my view as they have a good portfolio of investment properties and untapped potential in WBL.

I think for logistics and warehouse assets, there are a lot of players listed on SGX but the key is whether those players have scale. Which makes GLP so attractive because they have assets across key markets. I still like SingPost because they have been building their e-commerce platforms and though there are short term hiccups, I believe long term they will do ok.

9:38 PM  
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9:32 PM  
Blogger Sunny said...

Shifu Chua

Since UE market price is higher, will OCBC&GE still sell their shares to Yanlord&PREH at $2.6/sh? How do think about Oxley's entry into UE?


8:08 AM  
Blogger ghchua said...

Hi Sunny,

OCBC&GE already sold their stake in UE to Yanlord&PREH, which triggers the mandatory cash offer to other UE shareholders at $2.6/sh. There is no way for them to pull out from the deal.

As for Oxley's intention on UE, I think they have publicly stated that they will not be making an offer for UE and it is only for investment. However, since the general offer for UE had been priced at $2.6/sh and they had been consistently buying UE shares from the market at above the offer price, I suspect they do not want the offer to turn unconditional (need 50%). Which means, the offer from Yanlord&PREH is likely to fail and they will only end up holding around 33.4% of UE after the offer closes, with Oxley likely to be the 2nd largest shareholder in UE.

9:52 PM  

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A self-directed investor, looking to invest for retirement needs and bypass all those expensive financial planners/insurance agents. Investing is fun, profitable or most important of all, knowledge gained is useful for the rest of your life!

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