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 Q&A, General question on stock market

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gucci lee
post Jun 29 2014, 01:17 AM

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Joined: Mar 2012
From: Kuala Lumpur
Hi sifus,

Newbies here- can explain further on d latest public bank erights @ 13.80? What u mean by erights? Izit open to all? I dont understand the concept.. d price now is around rm19±±, means I buy at rm13.80 then can sell at rm19±± (market price)?

Thanks in advance.



gucci lee
post Jun 30 2014, 01:07 PM

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Junior Member
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Joined: Mar 2012
From: Kuala Lumpur
QUOTE(rayng18 @ Jun 29 2014, 11:26 AM)
if you have already have shares in PBB before the ex date you will be entitle to subscribe for the rights issue at RM13.80 at a ratio of for every 10shares in PBB, you are entitle for 1 rights issue if you hold PBB until/after ex date. then u will get your PBB-OR share on 24/6 and with this OR shares u can subscribe for the rights issue by completing the rights issue form which was sent to you and buy a bank draft for (the amount of PBB-OR *RM13.80) together with a RM10 revenue stamp and return back to the registrar by 18/7. Likewise if you already have the OR but you have no intention of going through the rights issue you can sell the PBB-OR in the open market from 24/6-3/7. The OR was traded at abt RM6 level now. after that you have no choice but to go thru the rights issue if not its just lapse and burn like toilet paper.

sell 1share of OR you get back        RM6.00
go thru the rights u pay                  RM13.80
so its goes back to the mother price (RM6+RM13.80=RM19.80)

so its not buy RM13.80 and can sell RM19.80
*
oooo.... thanks 4 ur explanation. if given a choice- which shares is better in terms of dividend, maybank or public bank? im going for long term investment. hope can learn more from here.. thanks every1...

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