If you had bought / intend to buy SIA R from the market, it should likely be one of these reasons:
The conventional method to get SIA R was by owning SIA shares in your CDP, bought before 6 May 2020 (aka Ex-Rights date). For every 2 Shares of SIA, you would have gotten 3 Shares of SIA R. Each SIA R will give you the right to buy Rights Shares @ $3.00 each.
Now that the Ex-Rights is over, and if you want to own SIA R, then you would have to buy it from the open market. SIA R will only trade from 13-21 May 2020. For every SIA R that you buy, it will give you the right to buy Rights Shares @ $3.00 each.
Hence, if you had bought SIA R at $0.80, and subsequently accepted the Rights Shares @ $3.00, your total cost would be $3.80 per share (excluding fees).
The payment will consist of 2 parts:
- the payment for SIA R buy contract (payment to broking house) &
- the acceptance of the Rights Shares @ $3.00
For acceptance of the Rights Shares @ $3.00, please refer below under PART I: HOW TO ACCEPT YOUR RIGHTS SHARES.
2. You have SIA R and want to add more
You already have SIA R and would like to get more so that you can accept more Rights Shares @ $3.00 each.
The payment will consist of 2 parts:
- the payment for SIA R buy contract (payment to broking house) &
- the acceptance of the Rights Shares @ $3.00
For acceptance of the Rights Shares @ $3.00, please refer below under PART I: HOW TO ACCEPT YOUR RIGHTS SHARES.
3. You want to trade SIA R (DANGEROUS IDEA!)
You may be thinking, SIA R looks much cheaper than SIA, hence the reason for buying it.
However, do take note that SIA R will only trade from 13-21 May 2020. Beyond 21 May 2020, there is no way to sell off SIA R, you will have to subscribe to the Rights Shares @ $3.00 each, in order to make the whole trade work out. If you do not subscribe to the Rights Shares @ $3.00 each, the Rights will lapse and what you purchased will become nothing.
Hence, if you had bought SIA R but have no intention to subscribe to the Rights Shares, do remember to sell it off by 21 May 2020 (5pm).
HOW SIA R IS PRICED IN THE MARKET
Market is always efficient with pricing.
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| SIA & SIA R pricing as at close on Fri 15 May 2020. |
The trading price of SIA R would usually be the price of SIA minus $3.00.
Hence, if SIA is trading at $3.90, SIA R will trade around or less than $0.90 (slightly lower as traders would price-in the fees).
Do take note that SIA R will only trade from 13-21 May 2020.
RIGHTS ACCEPTANCE PERIOD
The period for acceptance of the Rights Shares is 13-28 May 2020.
PART I: HOW TO ACCEPT YOUR RIGHTS SHARES
There are several ways to accept your Rights Shares. For straightforward purposes, the easiest and most convenient method is discussed here.
To ensure you have SIA R, please log in to your online CDP account and check the FREE balance.
Rights Shares in CDP
Method 1: Acceptance via SingaporeAir website using PAYNOW
https://www.singaporeair.com/rights/details
Follow the steps on the website.
Method 2: Acceptance via ATM (DBS/OCBC/UOB)
1. Info to prepare:
- Total number of Rights Shares you wish to apply (Allotment + New Quantity Bought + Excess)
- Your CDP number (12 digits starting with 1681)
- Adequate funds in your bank account for the total amount that you are applying for
2. At the ATM, go under More Services / Investment Services.
3. Look for Rights Application and select "SIA R" and follow through.
4. Key in the total number of Rights Shares you wish to apply. (Allotment + New Quantity Bought + Excess)
5. The total $ amount will be deducted from your bank balance.
6. Once confirmed and submitted, you will receive a receipt. Please keep the receipt.
7. The Rights Shares will be issued to your CDP Account on or around 05 June 2020.
- Your online CDP balance will reflect the Total quantity, which means Original quantity + Rights Shares quantity + successful Excess Rights Shares quantity .
- Unsuccessful Excess $ amount will be refunded to your bank account
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