The market cap does not depend on the conversion price, it depends on profits and profitability.
vest_101 > Mar 28, 2017 01:57 AM | Report Abuse
I think the multiple and discounts are quite irrelevant to my mind. Its the market capitalisation that matters. No reason for capitalisation to increase or decrease purely based on the matrix mentioned above.
Market capitalisation do increase or decrease based on corporate action in short term. Imaging now if M&A proposal in any listed company , will it affect the market cap? Or issue massive right issue with big discount to dilute shareholder value will it also decrese the market cap? I believe it will .
ICULS is not entitled for dividend that's correct, but it is entitled for capital gain or loss that very depending on the movement of the ordinary share price after it is listed.
And conversion price is fixed but not variable after ex-date of ICULS. During 3 years time period it will only be changed if there is corporate excise, and the change is fair to every shareholders and ICULS holders.
Good results next months with extra dividends ? That will support the price and entice people to subscribe to the rights. Companies usually have to plan their timings nicely for corporate exercises like this.
Don't think they will cancel the proposal. Proposal is awaiting SC's approval. Need rights issue badly to recapitalize the group...think they will be hit badly when FRS 9 comes. Good luck to those who are still on the boat.
FRS9, you need to have life time PD if severe and significant. How to define significant?? no one knows yet. even not significant MIA1,2 also need some provision. It will only distort current book.
KUALA LUMPUR (April 20): Aeon Credit Service (M) Bhd is offering asset-backed personal financing for the first time via its partnership with HelloGold Sdn Bhd. The move is deemed crucial to grow non-bank lender Aeon Credit's customer base.
HelloGold is a Shariah-compliant mobile-based digital platform where consumers can purchase investment grade gold at current market prices at a lower cost. The platform focuses on consumers from the middle-income bracket.
Aeon Credit managing director Kenji Fujita said the group had today signed the collaboration agreement with financial technology (fintech) start-up HelloGold to offer asset-backed personal financing products to subscribers of HelloGold's online gold savings platform.
Fujita said he is confident Aeon Credit would be able to gain a new significant customer base from this partnership. "We did not set a target for the customer base but we hope to leverage off from the users of HelloGold," he said.
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....
stockmanmy
6,977 posts
Posted by stockmanmy > 2017-03-28 08:28 | Report Abuse
this should be the final word on the issue.
The market cap does not depend on the conversion price, it depends on profits and profitability.
vest_101 > Mar 28, 2017 01:57 AM | Report Abuse
I think the multiple and discounts are quite irrelevant to my mind. Its the market capitalisation that matters. No reason for capitalisation to increase or decrease purely based on the matrix mentioned above.