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AMFirst Rights Issue

http://announcements.bursamalaysia.com/EDM...79?OpenDocument

Anyone with experience can advise on what are the options of action for those who want to take it up or renounce it?

Does the renounceable right expire? When does it expire?

http://biz.thestar.com.my/news/story.asp?f...67&sec=business
CIMB Research says not so soon

Some says its like the company is borrowing money to pay dividend. but that's the reits business model. imho holdings will be diluted if not subscribe.

This is first REIT in Malaysia give Right Issue, the next one to follow would be Hektar.
Base on Singapore REIT experience, the REIT's price will fall to lowest at the time when the Right come out. The reason is those who do not want to participate the Right, will sell their mother share and take the money to subscribe the Right. After the Right share listed, it will take few weeks to stable, then it will move up to the reasonable price again.

I am not sure if Malaysia will follow the same pattern or not, let see.

thanks for sharing.
only time can tell.

For AMFIRST Rights Issue, what option does the investor have ?
- Are we suppose to invest more money

If do not wish to pay for the right issue, one can sell off the renounceable right issue. It should worth at least some money, as right worth will be around the differentiate between the right issue pricing with the market price.

In this case, I better stop buying and wait.

Sell the "renounceable right issue" to who ?
How do we do that ?
Will I need to sell my existing AMFIRST?

What's the advantage & disadvantages to Rights Issue (for AMFIRST case) ?

Sell it to open market, just like ordinary stock traded out there.
There will be a counter code name something like AMfirst-OR once the renounceable right can be traded time, which generally last about 1-2 week.

You do not need to sell your existing Amfirst.

Advantage -
Company has more money to invest in new property in return more income, more diversify.
Reduce company gearing.

Disadvantage
Earning may be diluted due to more shares afterwards, but if earning can improve due to right issue (more newer properties more income), or reduce the interest on borrowing, the dilution may not noticeable.
While if newer properties generate strong income, one may not see the dilution at all, instead better earning.

Will the trading price of the -OR stock be fixed or also subjected to buy/sell placements of the open market?

It is not fixed,
it is traded like ordinary stock, so price can up and down.

According to the Bursa annoucement, the AMFIRST-OR is trade at RM0.83, right ?
When the traded time starts, I would have xxx units AMFIRST-OR in my CDS account. Correct ?
Will these AMFIRST-OR be converted to normal AMFIRST units after 2 weeks ?

You need to pay then only it can become a real share if i understand it correctly.

I have HLeB nominee account. I remember that last time there was another company issue RI. HLeB did the selling for me. Can I (should I) personally do the selling?

No, with AMfirst-OR, you are entitled to buy the right issue at Rm0.83. (assume the right issue is at RM0.83)

AMfirst-OR worth = Market price of AMfirst on the particular day - RM0.83. So probably you see some discount about 5-10% of AMfirst worth in the market price of AMfirst-OR when it is traded time.

AMfirst-OR doesn't automatically converted to Amfirst after 2 week.
You need to fork out or pay the RM0.83 before it is converted.

If you do not exercise it aka pay Rm0.83, after the last day of RI being exercise, Amfirst-OR is worth nothing, as AMfirst-OR will be delisted after 2 week.

I have an enquiry. Hope you are able to answer .

How do people exercise any rights issue if they want to?
(I do not own any AMfirst shares but just curious to know about it. I believe that there are many people who is inexperience in exercising rights issue. thanks)

Just buy a banker cheque, and send out together with the form.