Less Liquidity → Because the securities bought in a private placement are typically not publicly traded, such investments are not as liquid as those offered in an IPO. The difference in liquidity between IPOs and private placements is a critical factor that determines the types of investors that decide to participate.
Read the example below: On behalf of the Board of Directors of AAX, AmInvestment Bank Berhad wishes to announce that the Company proposes to undertake a placement of 32,258,066 new ordinary shares in AAX (“AAX Shares”), representing approximately 7.78% of the total number of issued AAX Shares, to AHAM Asset Management Berhad, AIIMAN Asset Management Sdn Bhd and Lavin Group Sdn Bhd (collectively, the “Subscribers”) at an issue price of RM1.55 per AAX Share, vide three (3) conditional share subscription agreements entered into between the Company and each of the Subscribers on 22 May 2023 respectively (“Proposed Placement”). https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3353741
What is the hold period for private placement? Typically, securities listed pursuant to a private placement will be subject under applicable securities laws to a four-month hold period before the securities can be re-sold. For convertible securities, the hold period begins on the date of conversion, not the date the convertible security is issued.9 Aug 2023 .
According to the Rules of Bursa Malaysia Securities, securities from private placement are subject to a six-month moratorium from the date of listing or issuance, whichever is later. This means that the securities cannot be sold, transferred, or pledged during this period. However, Bursa Malaysia Securities may grant exemptions or variations to this rule under certain circumstances. For example, in a recent case, KNM Group Berhad announced that it had obtained approval from Bursa Malaysia Securities to shorten the moratorium period for its private placement shares from six months to three months
in real life all PP applicants already had a Short Seller agreement in place. Thats not illegal for investors to have. its legal as long as PP shares are not pledged
so can execute short selling and repay shares after expiry of moratorium. Thats very comforting coz you have 4 sen profit immediately
4/22 => 18 % gain
it just depends on how much the IB charge you for 6 months loan of securities 🤣
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....
Felix888
3,375 posts
Posted by Felix888 > 2023-09-07 23:11 |
Post removed.Why?