Every now and then, I receive emails from my readers who ask specific questions. I just thought that it will be nice to post it in my blog so that everyone benefits, especially when you ask specific questions like processes of rights issue etc. So if you are asking questions, I will be replying through email (as much as possible as I have a day job and family), and I will repost it on my blog without your name and email.
So here is the first one (for those whom I replied earlier, if I would like to repost, I will seek your permission first.)
Email from Reader,
Hi, Firstly, thank you for your regular updates. I have been influenced by you quite a fair bit - Global Investment 35k, Viva 35k. And yesterday I copy cat you and bought 2000 shares of OUE to have a feel of the process of "rights issue". I saw the 9 to 20 offer announcement in SGX. Can I find out from you what will happen next and how to go about participating in the rights issue ?
I have also started the 5 days ein55 course to better manage my finance.
Lastly, admire your gungho to try gearing up investment via external financing. What interest rate ? My guess is must be high. 5%, 6% ?
Wow! I am humbled that there are people who are following what I am investing. Thanks for the affirmation.
For OUE C-Trust, the next step is the subscription of the rights issue. They will announce via a letter to you on how many shares you are entitled to buy. For your case, it will be 900 shares so you can choose to pay for the shares at $0.555 per share through ATM. After which, you can choose to apply for excess rights in case there are people who gave up their rights. However, there is no guarantee that you will be given. So total will be 900 + excess rights issue for this exercise.
Yes, a bit too gungho that there there are other people who have advised against this practice through my blog so I have kept this strategy on hold actually. Will update you all once I have done my review.