the bolded part is exactly what's in my thought, MI can't access to the funds.

cash is king, cash in your pocket is really yours. cash on any paper may still subject to the smallest possibility that it may turn out to be against your favour.

one month buy one lot, 20 years later also you will be a rich dude with a lot of shares and when dividend payment comes

i think it's gonna take longer for the banking sector to recover.....

i bought since it was 9.xx ish..... lol.... will buy more if it drop further.

Yes, this month we will see another round of OPR cut, that's why suspect the share price might go a little deeper......

like some forumer rightly pointed out.

the effect of the moratorium has not been taken in.

moratorium will end this month and we may see a rise in NPL in the next couple of months which i think maybe by december, we may see some heavier impact to the bank's earnings which will be announced only in Feb 2021.

I would think the price may hover around this level for a while.

if you are tempted to buy, maybe you can buy a little and keep more cash position and buy more when if it drops further.

very unlikely for the bank to go bankrupt 1 lah..........
unless suddenly whole economy down, no one can pay their debt lah. if not no chance la.

50

when it comes to bank valuation, shouldn't we put more weightage onto PB ratio instead?

sorry for the irrelevant post.

what happen to your siggy? what's the story? got any dispute thread that you have a link to share?

they are getting the relevant approvals.
what is there to open or register?

you will get a form when they despatch the notice to you, believed that your max entitlement has already been pre-determined for you, or you can fill the alternative number you want (subject to not more than your max entitlement), maybe some would want some odd number to turn their odd lot into a board lot and receive balance in cash.

after you fill the form, buy a bankers' cheque or something equivalent for the amount of nominal stamp duty, hand it over to the share reg, they will do the rest.

then sit back and wait for your shares to be credited to your CDS account on the pre-determined day.

https://www.bursamalaysia.com/market_inform...?ann_id=3109067
you all should read the announcement.

in this announcement dated 27 Nov 2020, it mentioned:

(i) BNM has approved the the increase in share capital pursuant to the 19th DRP.

(ii) the application of listing of new quotation, or what we normally define as Additional Listing Application "ALA") has been submitted to Bursa for approval, for this process, typically it takes about 2 weeks to 4 weeks to approve. or some cases it could be faster depending on many situation, one of it being that Bursa is just within walking distance to MBB, so it should be quick. LOL.

So right now what we have to do is just to wait for their announcement.

But to answer your question rocketm which is better?
Based on historical issuance (the 18 issuances prior to this 19th issuance), the shares issued under this DRP were priced at almost or near 10% discount, let's just take it at 10% discount for illustration (normally around 9.x% discount and while this 10% discount being the max discount pursuant to the Main Market Listing Requirement). so technically speaking, you are using your cash dividend to buy new MBB shares at 10% discount, do you think it is worth it or not?

But the only downside is that, this DRP will normally leave you with odd lots which make you harder to sell your odd lot in the odd lot market (inconsistent volume with hefty discount usually).

If you wanna go into nitty gritty aka count die grass:

1. You don't need to pay any brokerage fee to buy the new MBB shares, you will only need to buy the nominal stamp duty or equivalent.
2. if you buy from the market, it is typically without the 10% discount and you will have to pay your normal brokerage fee.

So with the above, you will have to decide whether you want to have more discounted mbb shares? or you want cash entirely?

To answer your 2nd question, your broker account - Rakuten still no news about it? what news do you want? please read the announcement i posted the link above and then wait for MBB's next announcement, these kind of things take a month or so to complete, it was only announced last week. Also, I think your Rakuten account is direct CDS account right? If yes, then your Rakuten will not be involved at all and they would not recommend you what to do (except for your friend friend dealer or remisier), no additional fee incur as compared to nominee account described below. You will receive the form from MBB's share registrar and deal with them directly (please read my earlier post).

HereToLearn, for nominee account, just instruct your dealer/remisier, they will do it for you at a fee.

This post has been edited by tehoice: Dec 2 2020, 09:56 AM

truncated. or round down in another words. no way they can round up, they won't have enough shares to go around.

yes, many will end with odd lots, when you sell it, likely that you will sell your board lots and leaving only your odd lots sitting inside, but this won't cost much anyway. you still receive div, etc in the long run.

but let's not forget, you get these shares at a discount compared to picking it up from the market, why not?

nooooo......... you're wrong.........

i attached a very brief calculation for you below.

You will receive 3 MBB shares and RM3.96 in cash.....

your total received is still the same at RM27.

but if you compare your total market value will then be:

3 MBB shares at market rate now 8.29 per piece = 24.87

(plus): cash div = RM3.96

Your market value arising from the DRP = RM28.83

which is more than your cash dividend of RM27 should you elect to receive in cash.


Disclaimer: the calculation/illustration above strictly is to address the wrong perception and understanding here in this thread. The above is correct based on corporate finance principle and disregarded all other ancillary/transaction cost which you may or may not incur to exercise your right in electing either cash or shares with cash.




Attached image(s)

Yes, this is correct. if you are a long/longer term investor, you will bound to have several rounds of DRP exercise, then you can make your odd lot into board lot of 100s as well.
in this case, you won't end up with odd lot for too long.

i take a long term view on mbb and such DRP exercise serves as a good opportunity for investor to collect new MBB shares at discount with very minimal cost (RM10 nominal stamp duty) vs if you buy from the market also more than RM10 for your transaction cost.

What can go wrong to the largest company in the country? if MBB falls, means your whole Malaysian economy also has collapsed.

hahaha, nominee account confirm no charges for them to help you manage your DRP exercise?
if there's no additional cost, then it is good~!

okay, i get where you are coming from, if i own only 200 shares, i would also likely opt for all cash option. but if you wanna build wealth in the lonngggg run, buying more MBB shares and get more DRP shares is also potentially another good option.

i have my long term view on mbb as below. I would suggest/recommend to opt for DRP if the amount (after considering all options) make sense to you.

Also note my disclaimer above, what i want to address is the wrong/incorrect perception.

the final decision is yours.

i think there will be some charges, even processing your dividends, they will charge you something.

so i believe that there will be fees charge to all kind of corporate exercise.

niceeeee..... lemme open one with them and only accumulate these stocks for super long term one.........