tjhldg, hope i can answer your questions

question 1 - after bonus, the conversion of 136 LA to 100 mother share won't adjust since they've fixed the conversion price at RM0.68 after taking into account the share split, rights issue and bonus issue.

question 2 - sorry tj but i dont quite understand your question. But as far as i know, the entitlement date for bonus is 14/10 and only existing mother shares bought on 9/10 will be entitled. The rights issue shares will also be entitled as the rights shares will masuk cds after you subscribe the RM0.69. The listing date for the rights shares havent fix yet, but i assume it will be on 15/10, to be same day as the listing of bonus shares (correct me if i'm wrong). The new mother shares arising from exercise/conversion of warrants and ICULS wont be entitled to bonus shares since the time frame is too short to be entitled on 14/10

Ahmad Muzamil Ahmad Murad

The entitlement date for bonus issue is 14 Oct. So rights issue has to be completed before 14 Oct. Technically you can convert your ICULS after they allot you the ICULS. However, it takes about two weeks to convert your ICULS to new IBHD Shares. It is not likely you can convert and get the new BHD Shares prior to 14 Oct. In fact, when the ICULS is listed on or before 14 Oct, the mother price would already be lower since it ex on 10 Oct.

Bursa's reference price of RM0.415 for the LR is correct. For every 136 LR you bought, you can convert into 100 IBHD shares based on the conversion price of RM0.68.

So, 136/100 x (RM0.415 + RM0.50) = RM1.2444 (which is the previous day closing price of RM1.25)

However, Bursa did not take into account that the LR is not entitled to the bonus shares. Bursa is just assuming that if you bought 136 LR at RM0.415, top up RM0.50 subscription price and convert the LR into IBHD shares, the market value of the IBHD shares you eventually hold will be around RM1.25, which is fair given that the previous day closing price is RM1.25.

However, in actual scenario, if we buy the LR now, top up and convert to IBHD shares, the market value of IBHD shares won't be RM1.25 since IBHD shares arising from the conversion of ICULS won't be entitled to bonus shares. This is where Bursa is wrong by using RM1.25 as the base for calculation of the reference price. What Bursa should be using is RM1.04 (=RM1.25*5/6) , which is the ex-bonus price of which the LR holder who convert their LR into shares won't be entitled to.

In short, based on RM1.04, the correct reference price should be RM0.26 [(1.04/136*100) - 0.50]

And based on yesterday's closing price of RM1.17, the ex-bonus price is RM0.975, which bring us to the reference price of RM0.21. Meaning, as long as the mother share price is RM1.17, you can break even even you purchase the LR at RM0.21.

And if based on yesterday LR price at RM0.12, if you bought 136 LR at RM0.12, top up RM0.50, and convert them into IBHD Shares, your cost of investment per IBHD Share is only RM0.84. This means that you still can break even the mother price drop to RM0.84 after bonus issue dilution.

The question is, can the mother price drop from RM1.17 to RM1.00 prior to the bonus issue? Based on the mother price of RM1.00, after the bonus issue will be RM0.84. Means for now, as long as the mother price is above RM1.00, it's safe to buy LR at RM0.12.

I believe investors do not want to commit themselves to subscribe the LR and sell the LR for 'fast cash'. With so many projects in hand, let's hope the mother share can sustain until we convert our LR.

Good call lavinesh24! Everyday trend higher

cheers to you! did you rebuy just now?

congrats! i bought some at 0.26. any news update on this stock?