Can't we reduce the number of units applied under DRP to achieve full lot?

Assuming that we have 1178 units, we can just apply for 22 units so that it makes 1300 units (13 lots). This is assuming that the number of units available under DRP is more than 22 units.

Might take awhile if number of starting units is small but once accumulated over time (via DRP and additional purchases), the number of units under DRP will increase and makes it easier to adjust to hit full lot. Need to plan well ahead though since DRP is twice a year after dividend declaration.

That's what I plan to do if I want to fully dispose off all units.

This post has been edited by Okina: May 29 2017, 06:44 PM

Then the whole debate whether to opt in on DRP or not due to odd lots is moot.

I'd understand if it is one lot = 1000 units back in the old days but now it is 100 units, so not much of an issue.

The only factor to consider is which is cheaper; DRP + revenue stamp + postage cost or buy from market (e.g. cheaper today or expect price to go down in the future).

Who wouldn't want to average down as much as possible?

If DRP is MYR 8.35 and the market price is MYR 8.00, I am better off buying from market using the cash dividends (well, more like buy using own money first and then get "reimbursed" when the dividend comes in.

Opposite is true if market price is MYR 9+. DRP is better than buying.

This is on the assumption that there is no spare cash to dump into stocks at that point of time and that the dividend will be banked in before other expense obligations are due.

Of course it isn't the case now. But still is something relevant to keep in mind for the future.

You don't know what the exact scenario will be for the next DRP exercise or the ones beyond that, no?

That is why I said in my earlier post, "Opposite is true if market price is MYR 9+. DRP is better than buying."

This post has been edited by Okina: May 31 2017, 12:08 PM

MBB 16th DRP: http://www.bursamalaysia.com/market/listed...cements/5799405

DRP issue price - MYR 10.00

If MBB share price continues to trade at MYR 9.50-ish +/- range, this is one DRP exercise that no one will opt in. Better to pocket the entire dividend and buy from market.