I have 30 lots in semb Corp marines, do I have to sell or buy 6 lots right, 30,000 x 5 = 150,000 rights Sell 150,000 @ $0.002 = $300 Subscribe 150,000 @ $0.20 = $30,000. Sembcorp Marine: Disclosure of Interest/ Changes in Interest of Director/ Chief Executive Officer :: Disclosure of Changes in Interest of Director - Mr Patrick Daniel (SGXNet / 15 Sep 2020 12:19) Sembcorp Marine: General Announcement :: Results on Rights Issue Sembcorp Marine (the “Company“) announced on 7 September 2020 that, as at the close of the Rights Issue on 2 September 2020, valid acceptances and excess applications were received for 9,434,192,612 Rights Shares, representing approximately 90.2% of the 10,462,690,870 Rights Shares available under the Rights Issue. You can choose to sell them instead of paying to convert them to shares. Simply multiply the Number of Share you own by 5 to get the number of rights you have. CHANGE IN OWNERSHIP STRUCTURE POST RIGHTS After the rights issue, Sembcorp Industries equity stake of Sembcorp Marine will either remain between 60.9% (if all existing sembcorp marine public shareholders exercise their rights) and 69.9% (if no existing sembcorp marine public shareholders exercise their rights). You can pay for the 2,000 rights ($400), and SELL the remaining 3,000 rights that you want to give up. For example, the proceeds would be $20 after selling 10,000 rights. Do refer to the diagram above. Semcorp Marine’s rights issue was undersubscribed with valid acceptances and excess applications received for only about 9.4 billion rights shares, or only 90.2% of the 10.46 billion rights shares available, according to an SGX filing. The Sembcorp Marine rights will be trading on SGX today (19 Aug 2020). After ex-rights, if price drops to below $0.20, it will be a nightmare for investors. The Rights Shares will, upon allotment and issue, rank pari passu in all respects with the then existing Shares, except that they will not rank for any dividends, rights, allotments or other distributions the record date for which falls before the date of allotment and issue of the Rights Shares. So what happens if we don’t sell the rights (due to commission exceeding sale) and also don’t subscribe to the rights (don’t want to invest further in a sinking ship)? ”) of Sembcorp Industries’ stake in the recapitalised Sembcorp Marine to Sembcorp Industries shareholders. The rights appear on the Singapore Exchange’s website as “Sembcorp Marine R” and last Friday, after three days of trading, ended the week at S$0.001. Hi Alvin, If i buy the 9 lots of SCM, S51 on 21 Aug 2020. The Company announces that, as at the close of the Rights Issue on 2 September 2020, valid acceptances and excess applications were received for 9,434,192,612 Rights Shares, representing approximately 90.2% of the 10,462,690,870 Rights Shares available under the Rights Issue. The Transaction will enable Sembcorp Industries and Sembcorp Marine to better focus on their respective industries. Post-rights issue + Proposed distribution, Sembcorp industries will own 0% of sembcorp marine, down from a 61.0% current stake! nothing will happen to your sembmarine shares. You get 5 rights for every share you own. SCM’s underwriter will take it back and sell to Temasek? You should sell if you have NO intention to subscribe the rights. You’ve mentioned both dates…, sell rights by 27 Aug subscribe rights by 2 Sep. Actually what is the difference between having the rights to buy now or after ex-rights? For information on the trading of odd lots, please refer to our 10 September 2020 announcement at, Please see our 15 September 2020 announcement at, Upon completion of the Transaction, Temasek is now a direct and significant shareholder of both Sembcorp Industries, and Sembcorp Marine. You can pay for the conversion at the ATMs (shares held in CDP) or transfer to your broker (shares held in custodian). The downside is that you have to pay extra in this process. Singapore shipyard group Sembcorp Marine (Sembmarine) is to be demerged from its parent Sembcorp Industries and undertake a SGD2.1bn ($1.51bn) rights issue. The demerger with Sembcorp Industries will enable the Company to pursue a focused strategy and build further its core engineering and execution capabilities. Sembcorp Industries (SCI) and Sembcorp Marine (Sembmarine) aim to recapitalise the latter through a $2.1b renounceable rights issue, the companies announced in a press release. Does sell this stock require commission fee? First off, let’s have a look at the salient aspects of the rights issue. Hi Alvin, I just received the notice. Can Dollar-Cost Averaging improve your performance? yes. Can they still use CPF/SRS funds to subscribe rights or must be done in cash mode? so no act may be better than sell. Please refer to our 15 September 2020 announcements at, Singapore Hub and Supporting Yards (Indonesia), Leveraging a Resource Recovery Opportunity, Changes in Interest of Substantial Shareholder (15 September 2020), Changes in Interest of Substantial Shareholders (15 September 2020), Issue and Listing of Rights Shares and Settlement of SCI Distribution (10 September 2020), Results of the Rights Issue (7 September 2020), Offer Information Statement (14 August 2020), Renounceable Underwritten Rights Issue: (1) Lodgment of Offer Information Statement (2) Acceptance and Excess Application for Rights Shares (3) Trading of Nil-Paid Rights (Under Stock Code: THFR); and (4) Timetable of Key Events (14 August 2020), Results of the Extraordinary General Meeting Held by Sembcorp Industries (11 August 2020), Results of the Extraordinary General Meeting Held by Way of Electronic Means (11 August 2020), Conditional Record Date for the Rights Issue (5 August 2020), Possible Delay in Receipt of Printed Copies of Circular (29 July 2020), Receipt of Approval-in-Principle from SGX (22 July 2020), Sembcorp Marine SGX Launch Announcement & Appendices (8 June 2020), Additional Information in Response to Questions from Shareholders (10 August 2020), Additional Information in Response to Questions from Shareholders (6 August 2020), SIAS Dialogue Sessions for SCM on 28 July and SCI on 29 July – Key Shareholder Questions Addressed (30 July 2020), Additional Information in Response to Questions from SIAS (22 July 2020), 35.1% discount to TERP based on last close of S$0.85, 76.5% discount to last close of S$0.85 on 3 June 2020, Sembcorp Industries has irrevocably undertaken a subscription of its pro rata entitlement of S$1.27 billion and an additional S$0.23 billion of Rights Shares – a total commitment of S$1.5 billion, Sembcorp Industries will be setting off its outstanding S$1.5 billion subordinated loan extended to Sembcorp Marine in June 2019 (the “, Temasek has sub-underwritten the balance of the Rights Issue with no sub-underwriting fees, After the completion of the Rights Issue, Sembcorp Industries undertook a distribution of its stake in the recapitalised Sembcorp Marine to Sembcorp Industries shareholders on a pro rata basis as dividends, Entitled Sembcorp Industries shareholders received 4.911 Sembcorp Marine shares for each Sembcorp Industries share held, fractional entitlements disregarded, with no cash outlay. But the management would often seek loans from banks and only resort to rights issue if debt is no longer a viable channel. What should i do? Sell or subscribe for say, a mid-term investor (holding 3 to 5 years)? If your proceeds are less than the commissions, of course it isn’t worthwhile to sell. What about those people holding SCI share? Following Sembcorp Industries’ Distribution, Sembcorp Marine has Temasek as a direct and significant shareholder. Sembcorp Marine (SCM) is seeking to raise S$2.1 billion by issuing 5 rights shares for every 1 share owned, at a conversion price of S$0.20 per share. The counter is Sembcorp Marine R (SGX:THFR). This is possible because the deal is a “renounceable” rights issue, which means shareholders can renounce or surrender their rights as they are under no obligation to take up their entitlements. BUY more Sembcorp Marine R (SGX:THFR) from the stock market. You have until 27 August 2020 at 5.00 pm to sell them and after which the counter will be delisted. with today rights price, selling mean paying instead of receiving because of commission. The 10,462,690,870 Rights Shares were allotted and issued on the Main Board of the SGX-ST on 11 September 2020 pursuant to the Rights Issue. But don’t just take my word for it since I did make a (big) mistake of paying a high price for SCM shares and was not decisive enough to cut loss early , The share price has been going lower and lower, a “Submarine” indeed . Sembcorp Marine will have a strong long-term future as a global leader in innovative engineering solutions for the offshore, marine and energy industries, with an increasing focus on clean energy. The allotment and issue of the Rights Shares took place before 9.00 a.m. on 11 September 2020, the same day as the settlement date of the SCI Distribution and the date of crediting of the Shares to the Securities Accounts of SCI Shareholders pursuant to the SCI Distribution . You can use CPF funds if the shares were originally held in CPFIS Account, provided you have enough funds and within the 35% limit for stock investment. If you need more information, you can refer to this where we explained what Sembcorp Marine and Sembcorp Industries wanted to do. The Rights Shares are your entitlement and have value. I also share your concern that SCM share price may drop below $0.20 as I am worry that there may be a wave of sell-down by SCI shareholders who receive SCM shares FOC (4.xx SCM shares for 1 SCI share). Trading of the Rights Shares commenced with effect from 9.00 a.m. on 11 September 2020. If we do nothing, will we still be holding the original shares in SMM? The acceptance of the payments and applications starts from 19 Aug 2020, 9am and ends on 2 Sep 2020, 5pm. Hi Alvin Can sell rights online like on the POEMS platform? Hi Alvin, I have THFR shares (6500) which approx worth only $19.5 (consider market value $0.003). Following the Transaction, Temasek’s wholly owned subsidiary Startree Investments is now a direct and significant shareholder of the Company. Do refer to the diagram above. The advantage of buying the rights from the stock market is that you would definitely get the excess rights and can convert them to shares. Sembcorp Industries and Sembcorp Marine jointly announced on 8 June 2020 a transaction involving the recapitalisation of Sembcorp Marine through a S$2.1 billion renounceable rights issue (the “Rights Issue”), followed by a demerger of the two companies via a distribution in specie (the “SCI Distribution”) of Sembcorp Industries’ stake in the recapitalised Sembcorp Marine to Sembcorp Industries shareholders. This month we have Sembcorp Marine. Or subscribe it (pay additional) and ‘hope’ sembcorp marine company can get better? The boards and management teams of Sembcorp Industries and Sembcorp Marine believe that the Rights Issue and the Distribution (collectively, the “Transaction”) will strengthen the two companies’ financial positions and will unlock shareholder value, and is in the best interests of our respective shareholders. Generally, the rights trading price is the difference between Sembcorp Marine price and rights price ($0.20). If you have 1,000 shares, you would be granted 5,000 rights. With greater flexibility following the demerger, both companies can pursue their own sustainable growth paths on the back of changes to their industries in recent years. Please don’t repeat the SIA renounceable rights and MCBs episode previously.. BigFatPurse Pte Ltd71 Ayer Rajah Crescent #03-06Singapore 139951Tel: 65-9812 0411Email: firstname.lastname@example.org, Intelligent Investors Immersive Early Retirement Masterclass SaaS Hypergrowth Investing China Stocks and Options Course 8-Figure Trading Blueprint Cryptocurrency Property Investing Masterclass All Courses, Blog postCase StudiesVideosInterviews#AskDrWealth, CEO of Dr Wealth. But should I wish to acquire more SCM shares to reduce the dilution to my original SCM shares, I would wait until the SCI shareholders have received their free SCM shares and started trading before making my move. As an example, if I have 1000 shares of S51, and I chose not to do anything, will I still retain the 1000 shares post- rights? (The actual scm shares, not the rights), yes the rights will become shares after you have paid for them to convert, Hi Alvin, so the due date for subscribing to the rights is 27th or 2nd of September? when the rights given, there is already commission charge. 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