From Taiping to Bukit Raja via WCE, the length is 248km, out of which only 165 km is tolled, 83km is toll free. If via NSE, it is 272 km and it is tolled for the whole length.
i have make some correction as below, assuming i owned 1000 unit WCEHB before 23 Oct, i will be getting 2000 RCPS which will be listed and available for trading as WCEHB-PR on date 25 Oct
Assuming the 23-Oct price for WCEHB is 0.40, 24-Oct - price for WCEHB will be adjusted to 0.29 25 Oct- additional 2000 WCEHB-PR goes into my account.
Then i can decide Option 1 - sell the 2000 WCEHB-PR on the open market with price 0.24 or lower to get back the cash Option 2 - 2000 x RM0.28 = to convert all 2000 units RCPS to mother share Option 3 - Surrender 2000 units RCPS to get 1500 unit of mother share.
If i do not perform any option above before 04 Nov 2019, the RCPS will basically voided?
uptrending,my calculation on WCE value is around yours which is 28m pkm for 233km or about 6.6B .so less government loan 1.9 the net value attributable to shareholders about 4.7B.the price now is a steal
This is another old post. year 2008 - 2013, growth rate for the KL-IPOH route was 9.5% compared to 1.3% and 2.2%, KL - Karak and KL - Seremban respectively
QUOTE With reference to statistics of one direction traffic flow for 2013, the average daily traffic for KL-Karak were 147.4 thousands, 206.1 thousands for KL-Seremban, and 253.2 thousands for KL-Ipoh. The growth rates for the five-year period of 2008–2013 were estimated at 1.3 percent, 2.2 percent and 9.5 percent, respectively. UNQUOTE
I can't tell you without risking my job. That should tell you enough.
I'm not super confident. But with important data im privy to (pcukm for each section, and revenue for each toll pcukm etc), and using very very conservative estimates. Like seriously damn conservative, you know how kiam i am.
It still looks like a decent investment. If you use normal estimates, it becomes bloody amazing at this price.
I queued to increase my stake by 30% today. Will be doing the right issue. Having said that, its only 3% or so of my portfolio on current market value. If i do the right issue, will probably push it up to like 5%.
Why did i not buy more? They are other bloody amazing investments now in KLSE, that you can buy using conservative estimates. But wce, if you have a 10 year perspective, have very very interesting kickers. 04/10/2018 10:46 AM
This time i actually studied the entire toll industry, both local and foreign.
I'm thinking about writing an update to my WCE post, but i wonder how much i can actually disclose as a lot of the specifics i now know are highly confidential and relates directly to my day job.
did you attend the recent AGM or EGM? did u listen the CFO said no more cash call ? i need your help to clarify on this. TQ. as what i read from the circular dated 25 july 2019 (page 15) saying that the project cost has increased to RM6.69b, hence the funding of the project thru equity portion is RM1.95b, amount need to inject in WCESB by WCEHB is RM1.56b. (based on 80% equity interest)
total cash injected into WCESB amounted to RM721m as at now, they need another RM886m to pump into the company, the coming right issue is only able to raise RM320m, means they still lack of RM566m, even though they said this will be funded by the RCPS under option 1 and exercises of warrants, but obviously this is not enough. (circular page 23)
Do u think there is another cash call in next 2-3 years? or even worse, private placement?
Leefongyong, Yes. I attended the last EGM/AGM. The question you mentioned was raised. The CFO answered that the company can raise more debt to fund the project should the need arise as after the rights issue, the equity portion is enough to fulfill the 20% equity.
I posted earlier :
"No more rights lah..
Actually the company only needs to fork out 20% equity for their portion. The total project cost is rm6.69 Billion, 20% equity is rm1. 338B. WCEHB's 80% portion would be rm1. 07B
So far WCEHB had already injected rm673. 73 millions (out of which is a rm150m term loan which would be repaid after the current rights issue). RM320 millions from this rights issue (after repayment of the rm150m term loan with rm4 million interest) will be injected as equity. The proceeds from the conversion of the 2 billion rcps in 2 years would bring in another rm80 million.
So, the total equity injected would have been RM1. 073 billion then.
The company, wcesb, could raise some rm500m-rm600m to fill up the debt portion to 80% which would be RM5. 35B. The current total financing obtained is RM4. 74B. There would be some savings from the land acquisition payments for cases now in the court.
So, no more requirement to raise fund after this RI. This was brought out in the recent AGM and the CFO did say so."
Uptrending, Thanks for reply. Yes, I have read your earlier post. Just to confirm as the figure you mentioned is different from what I read in the circular.
Total project cost : rm 6.69B 80% debt financing : rm 5. 35 B (currently only RM4. 74B) 20% equity required to be injected by wcesb: rm1. 34B Equity required to be injected by wcehb, 80% of rm1. 34B, is rm1. 07B The company can still raise fund for the project, if needed, through debt, instead of equity, after the RI.
Uptrending, I have reread the circular and I am quite sure that my figure is correct. Pls recheck circular dated 25 July 2019 page 14 and 15. The amount needed to be injected into WCESB based on 80% by WCEHB is 1.56b. As the AGM/EGM is dated 29 Aug 2019 (later than the circular), so please correct me if you have got your figure from the AGM/EGM or elsewhere. As RM 1.07b and RM 1.56b is a huge difference. TQ.
80% debt is obviously bigger than 20% equity. The 20% equity for wcehb is already in place after the RI. The CFO did mention in the EGM /AGM that the company can raise additional debt with the addition in equity after the rights issue.
the price will remain low until the last day for payment of RCPS.the major shareholders prefer the low price to discourage subscription by the retail holders so their underwriting can net as much as possible of the cheap shares
retailers should not sell at such low prices .instead they should subscribe for the RCPS to reduce the cost of their shareholding.The highway project's concession is for 55 years and so far all major concessions are highly profitable over time because the operating cost is low
the ex RCPS price of 0.35 is based on conversion px 0.32 and cum px 0.41.so holders who had not sold will see first stage gain already bcos RCPS subsription cost is 0.24..WCE ex all price should see steady improvement after this exercise in mid Nov
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
uptrending
1,852 posts
Posted by uptrending > 2019-10-16 08:02 | Report Abuse
From Taiping to Bukit Raja via WCE, the length is 248km, out of which only 165 km is tolled, 83km is toll free. If via NSE, it is 272 km and it is tolled for the whole length.