Hi Senneskathi, you can actually sell the OR if you dont intend to exercise the right. Otherwise you need to fill up the right exercise form (get it from MBB IB) and purchase a bank draft for the exercise amount and submit the form and the bankdraft to the MFCB registrar office. YOu need to decide fast, once the OR trading is over, you have no choice but have to subscribe or else you will loose out.
Jeffbkt , i jus curious. exercise of right issue is 1.57. now mfcb is 1.83-1.57= 0.26. now or is 0.33. why ppl still wan do the exercise? i miss something?
Every OR entitle for 3/7 free warrant. Theoretically warrant price is about 1/6 of the mother price since it is out of money. So it will be around 30 cents. So 30 X 3/7 will be about 13 to 15 cents. So the cost of OR, 1.57+0.33-0.13=1.77 which is still 6 cents profit. This is subjected that the mother share can maintain at 1.83 or above and the warrant is trading > 0.3
ohh ya.. forgot about the free warrant.. now i understand why.. Jus one more question, if i buy one the OR now, mean i will be able to subscribe the right issue with the price of 1.57? u know when is the expire day for OR?
hng33: welcome to buy MFCB-OR, looks like we have the same taste. After Gamuda-WR/WE, this is the next exercise I am looking at too. This time I am going to go thru the subscription for a huge profit again. Cheers.
It shall worth more than RM2.00, EPS 33.34 sen , NTA RM3.65 (before Rights), just do some calculation, you will find out. The current price at 1.87 is due to arbitrage activities by those shareholders who sold the original share and bought OR, it will go back to fair value in due course.
Price is weak bcos small shareholders do not like the rights issue is structured and many are selling. The exercise creates a lot of odd lots which are difficult and expensive to sell.
MFCB worth of investing...but can wait before re-enter till its new share arise from right issue at 1.59 and new free warrant listing.....as both of these new right share and free warrant are likely exert pressure on MFCB price due to their cheaper alternative
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IVKLSE
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Posted by IVKLSE > 2016-01-03 20:54 |
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