Thursday, September 16, 2010

AIMSAMPIReit rights exercise

I've AIMSAMPIReit and it had gone XR today. The right issue is 7 shares issued at $0.155 for every 20 shares held upon XR. Since I had 30 lots of Aims bought at $0.220, I will be having some odd lots after the rights issue. For those who have no clues on how to subscribe for rights, my newbie's FAQ link here might help out. It's still useful to ME after having done it for so long, haha! Here's the calculations:

Right shares entitled: 30/20x7 = 10.5 lots

Amount to fork out for 10.5 lots = 10.5 x 0.155 x 1000 = $1,627.50

Total amount of aims after rights = 10.5 + 30 = 40.5 lots

Average price after rights for 40.5 lots = (0.22x20 + 0.155x7)/27 = 0.2031

I will most probably subscribe to excess lots over and above my entitled ones. Firstly, it's to top up my share holdings to avoid odd lots. The chances to apply for excess will be higher if your holdings have odd lots, so I hope to get at least 0.5 lots. Secondly, at 0.155 per right shares, it's a steal. It'll average down my overall holdings and get a very very decent yield. For more detailed information, look at AK's and Momo's links,  which I'm sure they will be happy to provide at the commentary of this post.

So the problem here is how much to subscribe? What are the chances of getting them in the first place? I think I can only control how much I want to subscribe, I'll leave the rest to fate. But it's not just suka suka subscribe, because you will have to pay them first and if it's unsuccessful (or partially successful), they will refund you back. In fact, you'll probably see the refund in your bank account before the shares are in your CDP, so that's the best way to see if your application for excess rights are successful or not.

I think I'll follow momo's suggestion to double up. How about 40.5 lots excess? In that case, I'll need:

40.5 lots excess at 0.155 each = 40.5 x 0.155 = $6,277.50

Entitled amt of 10.5 lots = $1,627.50

Total amt of capital to fork out =  $7,905

Total amt of lots if all successfully subscribed (I doubt so) = 81 lots

No point calculating how much my average price will be because I highly doubt I can get all the rights shares I want. If I really do, then I'll be afraid because what do all the rest see that I do not see? hahaaa, funny human beings...


AK71 said...

Hi LP,

I enjoyed reading this post probably because it is familiar grounds to me and requires little effort. I am growing lazy. Haha.

Your wish is my command. Here are some links for your readers' easy reference:

Huat ah! :)

JK Holdings said...

I applied excess right of spicei2i 100 lots at $0.10, and I was granted all the excess right ! So u never know ... Here good luck ! Too bad I miss the chance to buy today as its record date is today ........

Jeremy said...

Haha, it is a demand and supply case here. At such attractive yield of around 10% after subscribing for the rights and excess rights, I believe many may go for the rights and excess rights as well. If overall demand for the rights units is high, then less likely to secure too many excess rights. Anyway, no harm applying excess rights if one can pay for it. Good luck! :-)

Just a side-note: I attended their EGM recently and there were a few concerns raised regarding their rights issue, rationale for acquisition of the property as well as getting AMP Capital for their debt advisory services.

So, all is not a bed of roses. Do not just look at yield alone as sole deciding factor in pursuing an investment. There maybe more uncovered considerations than meets the eye sometimes. :-)

Sanye ◎ 三页 said...

If investment bloggers can be used as a gauge for market sentiment, this right issue is surely a popular one.

la papillion said...

Hi AK,

Thanks for your link up :)

la papillion said...

Hi JK holdings,

I hope you're right :) But judging by the amt of pple wanting to subscribe rights for this issue, I kind of think it's a bit hard, haha :)

But just try it out lah :)

la papillion said...

Hi Jeremy,

Would you care to elaborate more on what issues there are regarding the rights?

It's not just the yield I'm attracted to. It's the stability of industrial reits that I'm in. I was previously in Cambridge but had switched out into this already.

la papillion said...

Hi sanye, seems like this rights is popular judging by the sheer amt of bloggers eager to get their hands on it. I hope we don't represent the majority of people haha