Thursday, March 20, 2014

Allocated 2 excess rights units for AIMSAMPI rights exercise

This post wraps up the entire episode about the rights exercise for AIMSAMPI Reit.

Before the counter went XR, I bought 6 lots of aims mother shares at 1.385. I didn't buy any nil-paid rights off the market. I'm entitled to 1050 shares of rights units, and I've fully subscribed and applied for excess rights units too. Today on 20th March 2014, I checked my CDP account and saw that I've a total of 8 lots. The refund is not in yet though. I'll probably see the refund into my bank account on 21st March. This means that:

1) I've successfully converted my 1050 shares of rights units into ordinary units at 1.08 per unit

2) I'm also allocated 950 shares of rights units at 1.08 per unit, rounding up my odd lots to 2 full lots

This brings my total average cost per shares, excluding brokerage, to be $1.30875. If inclusive of brokerage, it'll be $1.31262. Not a big deal right, considering that today's closing is $1.310. Well, I wanted to get into this for some time, so the rights brings me a good opportunity to enter at a good time. All in all, if you want to get into a reits with rights issue, the strategy of buying enough shares to reap the maximum number of excess rights units granted to you, is still a valid and good strategy.

Not such a good deal for existing holders of aims, I'm afraid - it's better for new comers like me.

7 comments : said...

I am in the exactly same scenario as you ... Thought got luck with more excess rights :(

la papillion said...

Hi Boonchin,

Hehe, well, I didn't hope for much after seeing how many people subscribed for excess rights :) Still okay lah, won't make much difference. On the other hand, if you apply xyz amt of excess rights, and you got ALL of it, you might start to have nightmares tonight LOL

ghchua said...

The title of this blog post is misleading. Allocated 2 excess rights units? You mean 2 lots of excess rights units?

After reading the content of this post, I came to understand that you had been allocated 950 excess rights units.

la papillion said...

Hi ghchua,

Indeed, it's very misleading. I apologise for the wrong choice of words in the title. Must have been late and I'm tired, haha

Yup, I really meant I'm allocated 950 shares of excess rights. The 1050 shares of entitled rights are not considered excess.

Anonymous said...

Hi LP,

I had only 1 lot so I applied for 825 excess rights. But i just checked and only got 500 units of excess!! :( Quite disappointed. So what should I do with this odd lot of 1.5?

la papillion said...

Hi Aceirus,

Wow, it's not good at all...Well, check if your brokerage platform has a unit share market. I know POEMS platform has it. So you either buy another 500 shares to round up, or sell 500 shares to round down. The comms for unit share is cheaper than normal lot too.

OR, you can wait till SGX implement the 100 shares per lot trading. I heard it's coming soon.

OR, you can just keep it. It doesn't really matter if you have odd lots, does it?

Anonymous said...

hi LP,

Yupe I intend to hold it. Guess i can also wait for the next rights issue hehe