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wonder9k
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Sep 10 2010, 12:32 AM
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New Member
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QUOTE(rosdi1 @ Sep 7 2010, 12:40 AM) or they will go to court to request for capital reduction to 0.05 and than right at 0.08 plus warrant. That how to do it. rosdi, can you explain more on this? I have seen this happening on ircb but im still blur about this. if they practice capital reduction, will there be any ex-price effect?(ex 0.05?) are the warrants from the capital reduction which suposed to be cash repayment? how do they arrive to the right exercise price?
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wonder9k
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Sep 13 2010, 12:40 PM
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New Member
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QUOTE(cherroy @ Sep 13 2010, 11:29 AM) Where got? The announced proposal is RI at Rm0.10 with free warrant given. (RM0.10 which is as same as par value, as I mentioned before, it is impossible to issue RI at below par value, unless you go for capital reduction first to reduce the par value) But i dont understand loh, even you do capital reduction, after the capital reduction, the share price will still under par value rite (ex-price)? for example, current share price=0.18, par value is 0.20 per share. company do capital reduction to 0.1 per share, the current ex-price will drop by 10cents according to the capital reduction or not?
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wonder9k
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Sep 25 2010, 04:45 PM
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New Member
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Sorry i have one question to ask regarding capital reduction, hope someone can help on this.
For example: Company A's par value is 0.50, with accumulated loss. Company proposed capital reduction of 0.40, meaning par value reduce to 0.10 to eliminate accumulated loss so that it can make right issues. but the current share price is traded at 0.40 which is below initial par value (0.50), can the proposed capital reduction go through eventually? because after ex-price of 40cents reduction, it will be zero. I am kind of confuse here.
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