Monday, March 10, 2014

Accepted, applied and paid for Rights Units!

Today I went to an ATM and exercised my rights units for AIMS AMP Capital Industrial Reits. I bought 6 lots, entitled to 1050 shares of rights units, applied 950 shares to round up my odd lots and also applied an additional amount for excess rights. All these rights entitled and applied are paid up in full (plus another $2 for the service fees) by the time I leave the ATM.


Again, the last date of exercising your rights units through ATM is 13th March 2014, 930pm. Don't miss that dateline. I've heard a horror story of someone who bought a lot of nil-paid rights off the market during the trading period, and forgot to exercise it. In the end, all the nil-paid rights expired worthless and nobody can save you. You can read this horror story here from Mr. Tan Kin Lian's blog post here.


At the end of the whole transaction, make sure you read the receipt issued. There are two important rows to check and double-check, and these are "Rights accepted" and "Excess Rts appl". Make sure that the "Rights accepted" is the exact number that you are entitled to, plus any nil-paid rights you bought off the market during the trading period. For example, if you have 6 lots like me, you'll be entitled to 1050 shares (6000*7/40 = 1050). If you didn't buy any nil paid rights off the market, then that's the amount you should have for "Rights accepted". If you also buy 3000 nil paid rights off market, then the total number of nil-paid rights you have is 4050 (1050 + 3000 = 4050). So make sure that your "Rights accepted" is 4050.


The "Excess Rts appl" refers to the excess rights that you applied. This one is less of a problem and wouldn't cause a catastrophic financial disaster if you press wrongly. Just press any amount that you want (provided you have the means to pay!). Minimally, you should apply enough shares to round off any odd lots. Anything above that is given lower priority, so it's up to your luck.


The timeline is as follows:

Expected date of issuance of rights units: 20th March 2014
Expected date for crediting of rights units in CDP and refund of money: 21st March 2014
Expected listing of rights units and trading of rights units as ordinary shares: 21st March 2014

6 comments :

Derek said...

Hi LP,

I forgot that I can apply for additional excess. I only focused on excess to round up. LoL

boonchin.ng said...

Hmm, my receipt issued by OCBC ATM showing slightly different :p

1. Entitled Right Appl (instead of Rights accepted)

Hope is the same ... lol :P

la papillion said...

Hi Derek,

Oh, you've done it? If you haven't do it yet, still have a chance :) This application of rights units above and beyond rounding off is really based on luck. But the risk reward is very good. If you get 1 more lot, it's effectively winning $240 based on current price. If you didn't hit it, you get your money back. Hey, Toto/4D also not so good right?

la papillion said...

Hi Boonchin,

Oh, mine is DBS/POSB :) Should be the same, don't worry :)

Derek said...

Hi LP,

Ya. Dateline for SCB was last Friday. Luckily I only own 1 lot kekeke.

la papillion said...

Hi Derek,

Haha, thanks for the telling me...didn't know it was so early for SCB. But kinda expected because they need to gather all the instructions before the actual dateline.

All well and good then, we'll wait for the allocation of the excess rights to see if we got any lottery winners :)