morning all... hong kong futures was crazy

next target gonna be 2143

2180 broke.. hu hu... nice

azrul you holding anything?

2180 still not broken, probably need to wait...

haha... futures trader very shy..

been trading for 6 years.. so far so good...

oh no.. reuters commented support at 2175.. whenever they commented this, market goes the other way round... dont jinx it...

this level is a grey area ... gotta wait

do accept the fact that market has no such volume over the weeks even KLSE has come to this high level. Investor is still on short term trading mode.

looks like there is some break out...anyway placed a stop. Hopefully to see break down of 2180.

ya still holding

but i believe long term investor is always better than contra player... ppl may think futures as gambling battle field ... you might be wrong when you start investing in longer term... after years of investing in futures... been satisfying with good return...

anyhow, be discipline to cut if market fails to do so

anyhow, be discipline to cut if market fails to do so

camile, i think if market could support above 2196.. the sky is still bright for buyer...

must have a few vehicles in investment...

re suffle your stock la ppl... stock index up like no body business but most stocks are dying...
it is very clear that investor not confident in market outlook... it is time to wait for overbought scenario in stock index and sell la

stop swinging with this stock la... might as well go for futures trading... cpo giving good return

this stock tip at this level for quite some time.... might as well go for futures trading... cpo giving good return

not time for this stock ... might as well go for futures trading... cpo giving good return

this stock need to wait but stocks has been quite slow... might as well go for futures trading... cpo giving good return

this stock is too risky... up n down is too quick to manage... might as well go for futures trading... cpo giving good return

hey it came down, huhu.... park my target price at 2198

Sounds very pro...

how do you guys trade? based on chart or fundamental?

what is ur target

what is ur bite for intraday player?

Been following your blog for awhile, it is quite organise. Market looks like correcting itself

CPO fly?

what is the fair value for the warrant?

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1770097

Lim Sin,

LR ceased on 23 Sep 2014

Chiongster1234,

50 000 LR * 0.135 = RM6,750

Go through subscription,
50 000 LR * 0.5 = RM25,000

Total : RM6,750 + RM25,000 = RM31,750

If convert from loan stock to mother share:-

1) 100/136 * 50000 = 36764 mother share without top up.

or

2) 50000 * 0.68 = RM 34,000

Hi Ahmad,

There is two options:-

1)convert during first five year tenure at conversion rate of 0.68

30000 * 0.68 = RM20400

So you need to top up RM20400.


2)100/136 * 30000 ICULS = 22058 mother share.

No need to top up.

The profile for the LR is not out yet, so I do not know whether you can exercise straight away. But during normal circumstances, you can exercise anytime after listed. You cant exercise during coming two weeks as the loan stock will only be listed on the 14 Oct 2014.

After subscription, you can just use the loan stock to convert to mother share once the it is ready for trading.



Posted by Ahmad Muzamil Ahmad Murad > Sep 15, 2014 11:13 AM | Report Abuse

When will IBHD-L listed? Means that I need 2 time conversion :

IBHD-LR to IBHD-L : Conversion price RM0.50 then later

IBHD-L to IBHD : Conversion price of RM0.68

Is it?

Hi Ahmad,

Yes to both questions.

tbk78,

Using your example 2000 shares of ICULS,

Calculation as below:-
100/136*2000 = 1470 mother share

yes. Your 4000 mother will not be affected even if you sell your right and iculs. You should be able to see it in ur account.

Im neutral on this share. They are offering bonus issue of 5 for 1 at 0.5 cents after this. So there will be another round of dilution. These entitlements need a lot of bullets.

MClove: Thanks for the details explanation just now. Well, just to sum up again based on your explanation just now. If I choose not to subscribe, meaning I will give up my mother shares of 4000. And at the same time on Sept 15, I would have 5000 right share to sell, and another 20000 of ICULS (Converted from my mother shares?). Does it work this way?

In short, these 4000 mother shares automatically give rise to 5000 right share + 20000 ICULS, and if we sell these 5000 right shares + 20000 ICULS, our 4000 mother shares would no longer exist in our hand? Correct me if I am wrong.

Thanks again - I am still a newbie though, haha.

Hi cpchan,

Your are almost right. But your 4000 shares of mother is still in your hand if you dont sell it.

Your below statement is correct.

In short, these 4000 mother shares automatically give rise to 5000 right share + 20000 ICULS.

cpchan,

IBHD-OR is a right issue where it is a tradable share for maybe a week time and if someone did not buy mother share before ex. They can buy from IBHD-OR. If IBHD-OR is trading at 0.71 and they went through the subscription. Then they have to pay 0.71 + 0.69 = rm1.4 per lot of right issue. Later, this right issue will be included in the mother share. Therefore, there is a fixed cost at 0.69 for ibhd-or when it starts to commence and whatever price on ibhd-or will be an added cost.The person who subscribed will also get 1 free warrant for 5 shares subscribed.

Because you bought before ex, then only you are allow to buy the mother at discounted rate of 0.69.

If you have no intention to subacribe to both right and ICULS. Then you can treat these entitlements as free. Meaning your if you hold 4000lots mother b4 ex, you will have free 5000 share of right and free 20000 of ICULS.

Posted by cpchan > Sep 12, 2014 11:44 AM | Report Abuse

MClove: Thanks for the info. I am still quite confused on this - let say if i sell 5625 of shares on 15 Sept, then my mother share would also be included as part of the 5625 shares right, and I would by then have no more shares in my hand, right? (If I initially have 4000 mother shares).

Looking at your initial estimate, seems like loss is inevitable if we decided to sell. Am I right?

On the other hand, I am not so clear on the IBHD-OR and IBHD-IR. Would you help to explain for me as well? (I.e. their similarity and difference).

Thank you very much.


Hi cpchan,


I think you are confused. Right issue has nothing to do with your mother share now. At this moment, you can't see your 5625 share in your account yet as you did not subscribed by paying 0.69 cents per right and it will only be listed on 14 October.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1725321


If you have 4000 share of mother you are entitled to 5000 shares of right. So you can sell your 5000 right share in IBHD-OR on 15 Sept, to gain some profit out of this right to cover your loss in your mother share.If it ibhd-oR on 15 Sept list at .70 then your profit will be 0.7 x 5625 = rm3937.5

IBHD-LR also works the same.

4000 share of mother gives 20000 of ICULS. you also cant see it in your account yet. Only can be traded in IBHD-LR on 15 Sept. If you sell your 20000shares of ICULS at 0.3 then you will gain some profit at 20000 x 0.3 = rm6000.

So total gain is rm 3937.5 + rm6000 = rm9937.5

Then you minus out with your loss in the mother.

If you plan to subscribed instead then you may read my previous comment of what to do.

Hope you understand now.

Posted by tiekyu > Sep 12, 2014 10:33 AM | Report Abuse
"The ICULS are convertible to I-Berhad ordinary shares any time within the five-year tenure at a conversion price of 68 sen, or 136 ICULS in exchange for 100 new ordinary shares."


Let say I am entitled to 2000 ICULS with cost = 2000x0.5= 1000RM. If I like to converse to ordinary share, I need to pay more RM1000 (2000 x 0.68 x 100/136)to converse , is it right?


Hi Tiekyu,

I think you mixed up.

The conversion can use either option.

"The ICULS are convertible to I-Berhad ordinary shares any time within the five-year tenure at a conversion price of 68 sen

Means you can convert into mother share by topping up 0.68cents. If you subscribed at 0.5 then top up 0.68 within 5 years, your cost for the conversion will be 0.5 + 0.68 = RM1.18 to convert to mother.

or

You can use 136 ICULS in exchange for 100 new ordinary shares.


Meaning you can use 1360 shares of ICULS to get a 1000 share of mother without topping up.



Using your example of mother 2000 shares,

First option will be:-
2000 shares x 0.68 = rm1360

Second Option is conversion:-
100/136*2000 = 1470 mother share

cpchan MClove: So does it mean that if we do not opt to subscribe to right, how much could we actually sell on 15 Sept? Eg if I have 4500 shares as in your example. Does it mean that on 15 Sept we could sell 5625 shares, if we choose not to subscribe? If we sell it to the market on that day, what would be the starting price? Still RM 0.69? Kindly advise. Thanks.
11/09/2014 12:51

Hi cpchan,

Yes, you are right. You can sell the right away if you do not want it.
The pricing of the right or loan stock is unknown, I read some research article and they mention

0.76 for OR
0.39 for LR

But dun think will be that high. This is just for reference.

The IBHD-OR and IBHD-LR works this way.

if the price of ibhd-or traded at 0.71, if your sell it, you will get 3993.75.

the actual price of the OR when it traded at 0.71 means 0.71+0.69 = rm 1.4. so if you subscribed to it, meaning you are paying half price to buy the mother share. Because this right will convert into mother automatically after subscription. Then every 5 lots of right will be given a free warrant.

This goes the same to LR.

tbk78, there is 3 things that is offered to you if you hold on to the share till ex-date. Detail you could go to bursa website for reference.

1) holding 4 mother shares b4 ex, you will be entitled to 5 lots of right issue at discounted price of rm0.69
2) every 5 right issue that you have, you will be given a free warrant.
3) every 1 mother share b4 ex, you will be entitled for 5 ICULS at price rm0.5.

all these right issue that you have, you cant do anything until IBHD-OR is commenced on 15th September. So on 15th, you search for this code IBHD-OR. This code only last for a week, it will ceased on 23th September. You could opt to sell your right issue to the market there and you will see profit straight away, you can treat this as a free share to you and whatever price you sell is the actual profit.

So, with 4500 mother, you are getting 5625. This will show in ur acc.

Calculation based on first entitlement:-
5/4*4500 = 5625

if you sell your right, you wont be given free warrant. But you will get some profit to cover ur loss.

based on 3rd entitlement, with 4500 shares you will be given 22500 shares of ICULS. You could sell this to the market on 15th Sep in IBHD-LR. Treating this as free ICULS. Your selling price will be your actual profit. Same as the right issue.

Eg. if you sold all 22500 share of IBHD-LR at 0.3 then calculation will be as below:-
0.3*22500 = rm6750

If you see future value in the company, you could hold on to the right issue or LR and go through the corporate exercise which you will need some bullet to pick up the shares which in your case, will be around 15k to pick up all the entitlement. Right issue eventually will become mother share meaning you are only using 0.69 to buy the mother share and you will get a free warrant for every 5 right issue you have.

Therefore plan well b4 15th September.

CK901026, you are also entitled to 5000 shares at 0.5 cents per 1000 shares. This LR also commenced on 15th September. This also works to same as the right. Have a look.

CK901026, I dont really understand your question but according to what you have mentioned, you purchased 1000 shares before ex, so you are entitled to buy 1250 share of the right at 0.69. The one that you bought today does not offer you to buy the right anymore. It will be normal trading only. So you can opt to sell your 2000 shares to your market if you wish to. Then may use the money to buy the right issue.


iBHD-OR will be commenced on 15 September, you can sell your 1250 share to the market on that day or before the right is ceased. Alternatively you can just hold on to your OR share and start to buy bank draft worth RM862.5. Then complete a form (ask from your remisier) attached with a revenue stamp worth RM10 then you will need to the registrar. Do one of the option, if not, your OR worth nothing after it is ceased.

LISTING'S CIRCULAR NO. L/Q : 71458 OF 2014

Renounceable rights issue of up to 286,215,890 new ordinary shares of RM0.50 each in I-Berhad (“Rights Shares”) together with up to 57,243,178 free detachable warrants (“Warrants”) on the basis of five (5) Rights Shares for every four (4) existing ordinary shares held and one (1) Warrant for every five (5) Rights Shares subscribed for by entitled shareholders as at 5.00 p.m. on 12 September 2014, at an issue price of RM0.69 per Rights Share (“Rights Issue with Warrants”).


Kindly be advised of the following :

1) The Rights commence of trading : [ 15 September 2014 ]

2) The Date of Despatch of the Prospectus and Provisional Allotment Letter of Offer :
[ 17 September 2014 ]

3) The last day and time for Acceptance, Renunciation and Payment :
[ 30 September 2014 @ 5:00pm ]

4) The Rights cease quotation : [ 23 September 2014 ]

The Stock Short Name, Number and ISIN Code [ IBHD-OR, 4251OR and MYL4251OR007 ] respectively

Hope this help!

Go4share, if you are only speculating, you may sell both rights and ICULS on 15 September. ICULS gives you interest 2% to 3% per annum and you can convert into mother maybe a year later depnding on the profile of the loan stock. This is where you see future value in the company in long run.

ahmoi68, you need to buy a bank draft from bank and a stamp worth RM10 then fill up a form to submit to registrar.Get the form from your remisier. Pay before 30 September to registrar.

The OFS is undertaken by Sumurwang Sdn Bhd to I-Berhad’s minority shareholders excluding The Peak @ KLCC Sdn Bhd, its related parties and connected persons, such as Sumurwang Sdn Bhd, Sumur Ventures Sdn Bhd, Sumurwang Capital Sdn Bhd, Tan Sri Lim Kim Hong, Puan Sri Tey Siew Thuan, Tay Siew Lian and Tang Soke Cheng.

Major shareholder not subscribing to the loan stock. May undersubscribe

4 mother shares before ex, then you will be offered 20 lots of ICULS at 50cents each.

pputeh : 1 mother share gets 5 ICULS before ex and need to pay 50cents each to subscribe.


2) Renounceable restricted offer for sale of up to 289,132,870 5-year 2% to 3% irredeemable convertible unsecured loan stocks of up to RM144,566,435 at 100% of its nominal value of RM0.50 each on the basis of five (5) ICULS for every one (1) share held by the OFS entitled shareholders as at 5.00 p.m. on 12 September 2014, at an offer price of RM0.50 each (“OFS”).