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Wingtai's rights issue
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FCGP83
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19-Nov-2007 23:03
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Hello Tiandi, Thks for your time and clear explanation. this is especially helpful to newbiz like me. Hopefully Wingtai dun crash any further! |
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tiandi
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19-Nov-2007 22:17
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hello FCGP83, Q: I am a newbie in stk mkt and urgently needed help with some rights issue with wingtai. I have been allotted with 100 rights and i have proceeded to accepted the right via ATM. Other than that, i have applied for excess 900 rights via ATM. Seems like this 900 excess right is subjected to approval from wingtai. YES, correct, your application may not be successful. Q: Problem right now is i have purchased another 900 rights from the open mkt as previously my broker was telling me that there are no expiry as long as i make payment via ATM and this is making me confuse??? A: These Rights have expiry date, 23 Nov. The statement 'no expiry as long as...' is technically incorrect thus cause your confusion, may be you misunderstand what the broker was trying to convey the meaning to you. In any case you just need to know that you must exercise by paying exercising price of $2.05 before 23 Nov otherwise these 900 rights become zero value after 23 Nov. And she told me the reason to buy this 900 right is to make it a full lot. A: Yes that is one of the common reasons. Note that you can hold odd lot for as long as you like. Trading of odd lots is possible also , just cost more in trading fee. You can also HOLD them for long long time.. But seems like the 900 excess right that i have purchase frm open mkt and the 900rights in which i applied fm atm are different case. The difference are the process and the cost to you: 1. when you buy from the market, you pay for the market value of the Wing Tai R100 , I think the price is around 60 cents plus/minus, so you have to pay 900x0.60+ trade commission plus CDP clearance and tax to get these 900 Wing Tai R100 into your CDP account. 2. Your application of 900 Excess Rights might not be successful.. CDP will inform you after their processing of all Rights application and Excess Rights Applications. They will refund you on money if your application is not successful, just like IPO. What can i do to convert them to normal shares? You pay exercise price of $2.05 x 900=$1845 to convert them to 900 New Wing Tai Mother shares. You may use ATM method just as you have done before, last transaction time is 9.30pm on Nov 23. So now your total cost for getting the new Wing Tai shares going by these two processes are: 1, is equal to about 60cents plus clearance fee plus tax plus plus $2.05 exercising price for one new Wing Tai Share 2, is equal to exactly $2.05 exercising price per New Wing Tai share!!! that is because you are rewared with the Rights as entitled shareholder!! |
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FCGP83
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17-Nov-2007 20:48
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Hi All, I am a newbie in stk mkt and urgently needed help with some rights issue with wingtai. I have been allotted with 100 rights and i have proceeded to accepted the right via ATM. Other than that, i have applied for excess 900 rights via ATM. Seems like this 900 excess right is subjected to approval from wingtai. Problem right now is i have purchased another 900 rights from the open mkt as previously my broker was telling me that there are no expiry as long as i make payment via ATM and this is making me confuse??? And she told me the reason to buy this 900 right is to make it a full lot. But seems like the 900 excess right that i have purchase frm open mkt and the 900rights in which i applied fm atm are different case. Can someone enlighten me what can i do with the 900rights bought from open mkt? will this be expired on 23 nov? What can i do to convert them to normal shares? |
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