DANIEL ONG asked 2 years ago
Hi Rusmin,
CICT has issued non-renouceable rights (56:1000) and I've received the letter which if I were to subscribe, I will receive odd share lot.
The rights issue price is $2.007 per Rights Unit. And CICT close price today is $2.17 (That's a 7.5% discount)
Total shares to be issued is 377,303,974 and weighted average diluted units = 6,663,410,000 (5.7% dilution).
Q1: Should I subscribe for the rights issue?
Q2: If I subscribe, then I will end up having odd share lot. Will there be a problem or more expensive to sell this odd share lot later?
Q3: If I choose not to subscribe, then there is a dilution of the shares. Should I then go to the market after the 24-Sep-2024 Pay Date (end of exercise date) to subscribe standard lot (multiples of 100 shares)?
1 Answers
Rusmin Ang Staff answered 2 years ago
Hi Daniel
If your average cost price is higher than the rights issuance price, I think it makes sense to take up if you still have allocation for it. Otherwise, you can give it a miss without suffering any dilution since this deal is accretive with potential upside from Ion Orchard. The odd shares is hard to clear and costly but if you can choose to subscribe in multiple of 100, then you should opt for it or apply for excess Rights so they can round up the odd shares for you.
We will be releasing a roundtable video on this topic tomorrow. So do watch out for it!
DANIEL ONG
replied 2 years ago Got it and thanks
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