Wazua
»
Investor
»
Stocks
»
StanChart Rights Issue - Allocation query?????
Rank: Veteran Joined: 6/2/2010 Posts: 1,075
|
1 for every 18.
If say an investor holds 2000 shares; this works out to rights of 111.11111111111111111111111
NSE sells shares in blocks of 100; what happens then? Is it rounded up, down or what? Or does the 100 blocks rule not apply to rights?
Somebody educate me.
|
|
|
Rank: User Joined: 5/9/2010 Posts: 1,418 Location: Nai
|
Standard charterd correction is over. Its a buy NOW especially those inthe fantasy market game. @stockmaster. I bet i am blowin ur cover. Your future depends on your dreams so go to sleep !
|
|
|
Rank: Veteran Joined: 6/2/2010 Posts: 1,075
|
qw25041985 wrote:Standard charterd correction is over. Its a buy NOW especially those inthe fantasy market game.
@stockmaster. I bet i am blowin ur cover. Pray tell, how does this answer my question-the title of the post?
|
|
|
Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
|
My 2 cents wrote:1 for every 18.
If say an investor holds 2000 shares; this works out to rights of 111.11111111111111111111111
NSE sells shares in blocks of 100; what happens then? Is it rounded up, down or what? Or does the 100 blocks rule not apply to rights?
Somebody educate me.
You can even buy 1 share on regular trading thru the odd lots board. Rights allocation. They usually round down. So in ur example, u will get 111 shares.
|
|
|
Rank: Veteran Joined: 6/2/2010 Posts: 1,075
|
Horton wrote:My 2 cents wrote:1 for every 18.
If say an investor holds 2000 shares; this works out to rights of 111.11111111111111111111111
NSE sells shares in blocks of 100; what happens then? Is it rounded up, down or what? Or does the 100 blocks rule not apply to rights?
Somebody educate me.
You can even buy 1 share on regular trading thru the odd lots board. Rights allocation. They usually round down. So in ur example, u will get 111 shares. Thanks Horton.
|
|
|
Rank: Veteran Joined: 8/11/2010 Posts: 1,011 Location: nairobi
|
|
|
|
Rank: Member Joined: 9/26/2006 Posts: 439 Location: CENTRAL PROVINCE
|
@qw25041985:
Its definitely a buy especially if you intend to participate in the rights issue, with the register closing tomorrow at 3.00PM.
@My 2 cents:
The rights are being offered at a ratio of 1:18 meaning it would be prudent to purchase the share in multiples of 1800 to ensure you end up with a multiple of 100 in the rights issued. However, the Directors reserve the right to deal with any odd lots as they deem fit (read the AGM resolution authorising the rights issue). This means they may round upwards or downwards the final allocation to ensure no odd lots in their register of share holders.
The ratio of 1:18 was not a very wise idea especially to the small shareholder as the rights are heavily tilted to persons having a shareholding greater than 1800 shares.
However, the CEO has promised an interim dividend to accompany the third quarter results (Today Nation Newspaper-Business pages).
I estimate the interim dividend to be in the Ksh 5-6 range; and the full year dividend (interim + final dividend) to be in the Ksh 15-16 range ; about 6.5% return on investment at current price.
Happy hunting.
|
|
|
Rank: Veteran Joined: 6/2/2010 Posts: 1,075
|
@ stocksmaster; I can see you have mastered this SCBK stock. Seeing as it is the reason you are first on the fantasy game.
Thanks for your reply.
P/S Re. Dividends. Going by what you say, I guess they have decided to pay 2 rather than 3 dividends per annum.
|
|
|
Wazua
»
Investor
»
Stocks
»
StanChart Rights Issue - Allocation query?????
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.