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? I do not own any Sembcorp Marine (SCM), but I do own Sembcorp Industry (SCI), so naturally I am interested. with today rights price, selling mean paying instead of receiving because of commission. The acceptance of the payments and applications starts from 19 Aug 2020, 9am and ends on 2 Sep 2020, 5pm. Sembcorp Industries will continue to be focused on its core areas of energy and urban development, and be poised to capture opportunities in sustainable energy transition, while Sembcorp Marine builds on its core engineering solutions for the offshore, marine and energy industries. Update 20 Aug 2020: Given that the rights are trading at $0.002, it might not make sense to sell if you have too little rights because you have to pay minimum commission. If you need more information, you can refer to this where we explained what Sembcorp Marine and Sembcorp Industries wanted to do. If i sell its at $0.002 x 15000??? You can sell the rights as you normally sell a stock via your broker. A believer of the Factor-based Investing approach and runs a Multi-Factor Portfolio that taps on the Value, Size, and Profitability Factors. 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. Sembcorp Marine hopes to raise S$2.1 billion under 5-for-1 renounceable rights issue at an issue price of $0.20 per share. BigFatPurse Pte Ltd71 Ayer Rajah Crescent #03-06Singapore 139951Tel: 65-9812 0411Email: admin@drwealth.com, 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. The rights issue will involve the issuance of five shares for each existing share held, at an issue price of S$0.20 per rights share. You buy it like how you normally buy a stock. 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. In summary, Sembcorp Marine shareholders will benefit from the Rights Issue in the following ways: Sembcorp Marine will strengthen its liquidity position and balance sheet, enabling it to execute its existing projects and compete for high-value projects going forward. if not enough rights to sell may not be worthwhile to pay for the comms. Sembcorp Industries will subscribe for up to S$1.5 billion of these rights shares. For information on the trading of odd lots, please refer to our 10 September 2020 announcement at this link. This means that if a shareholder owns 100 shares in Sembcorp Marine, the investor will be entitled to 500 Sembcorp Marine rights shares at a total price of S$100 (excluding any fees). Hi Alvin what happens if i have 15000 semb marine shares? 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. But of course the prices are subjected to changes due to market forces and perceptions. SINGAPORE (Reuters) - Singapore's Temasek Holdings stepped in on Monday to support a S$2.1 billion ($1.5 billion) rights issue by Sembcorp Marine SCMN.SI as … The outstanding loan principal amount is S$1.5 billion. There are at least 3 options you can consider. Thank you. Distribution of Sembcorp Marine shares to Sembcorp Industries shareholders, Footnotes: 1 TERP – Theoretical ex rights price 2 Based on the 5-day period up to and including the last close as of 3 June 2020 3 VWAP – Volume weighted average price 4  73.0% discount to the 5-day VWAP, based on the 5-day period up to and including the last close as of 3 June 2020. SHAREHOLDERS of Sembcorp Marine (SMM) ... At the EGM, 98.76 per cent, or shareholders of some 1.4 billion shares, voted for the rights issue, while 87.72 per cent, or shareholders with a collective 121.3 million shares, voted for the whitewash resolution, the company said in a regulatory filing. 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. Don’t let it expire. As part of the issue, S$1.5 billion is made up of a loan from SCI to SMM that will be converted to equity in the books of SMM. 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)? The price of Sembcorp Marine is already almost $0.20, which is the same as the “discounted” rights price of $0.20. My guess is that the initial price would be close to $0.02 since Sembcorp Marine closed at $0.22 and the conversion price is $0.20 for each right. We are talking about the rights here. Both companies on Monday jointly stated via a press release that they are seeking a recapitalisation of Sembcorp Marine through a S$2.1 billion renounceable rights issue. Trading of the Rights Shares commenced with effect from 9.00 a.m. on 11 September 2020. For more details on the results of the Rights Issue, please refer to our 7 September 2020 announcement at this link. Following Sembcorp Industries’ Distribution, Sembcorp Marine has Temasek as a direct and significant shareholder. ”) of Sembcorp Industries’ stake in the recapitalised Sembcorp Marine to Sembcorp Industries shareholders. 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). Based on past Right issues, the first few days usually command better prices. The Rights Shares are your entitlement and have value. For example, if Sembcorp Marine price is $0.23, the rights will usually trade around $0.03. Sembcorp Industries and Sembcorp Marine are today proposing the recapitalisation of Sembcorp Marine through a S$2.1 billion renounceable rights issue (the “Rights Issue”), followed by a proposed demerger of the two companies via a distribution in specie (the “Proposed Distribution”) of Sembcorp Industries’ stake in the recapitalised Sembcorp Marine to Sembcorp Industries shareholders. First off, let’s have a look at the salient aspects of the rights issue. You should either sell the rights or pay for them to convert to shares. THE BUSINESS TIMES Sembcorp Marine - Find Sembcorp Marine News & Headlines, insight and analysis in Singapore, Asia-Pacific & global markets news at The Business Times. What should i do? The advantage of the former is that you don’t need to pay additional fees (above the $0.20 conversion) for the excess rights. Trading of the Rights Shares commenced with effect from 9.00 a.m. on 11 September 2020. On completion of the SCI Distribution, Sembcorp Marine has ceased to be a subsidiary of SCI. Based on recent average price of $0.74 for Sembcorp Marine, the theoretical ex-rights price (TERP) is TERP = [ ($0.20 x 5) + ($0.74 x 1)] / 6 = $0.29/share Rights Issue and Demerger of Sembcorp Marine from Sembcorp Industries (难兄难弟) Temasek stocks of Sembcorp Industries SGX: U96, parent stock) and Sembcorp Marine (SGX: S51, subsidiary stock) just announce 2 bundled corporate actions of rights issue for Sembcorp Marine and then demerger from Sembcorp Industries. Under SembMarine's $2.1 billion renounceable rights issue, five rights shares will be issued for every one existing SembMarine share at 20 cents per rights share. For e.g., you have 5,000 rights but only wish to subscribe to 2,000 rights. If we do nothing, will we still be holding the original shares in SMM? Loss-making Sembcorp Marine on Monday proposed a S$2.1 billion ($1.5 billion) recapitalisation through a rights issue that will be backed by the rig builder's parent firm, Sembcorp Industries, and state investor Temasek Holdings. SELL the rights which you don’t wish to convert and. There will be a proposed Sembcorp Marine Rights issue (SCM Issue) in conjunction with the demerger. 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. 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. If you wish to subscribe, make sure you do so within the time period! yes. Hi Alvin, what would be your advice in this case (150,000 rights)? The Transaction will enable Sembcorp Industries and Sembcorp Marine to better focus on their respective industries. Sembcorp Marine, which has been doubly hit by the COVID-19 pandemic and recent collapse in oil prices, will also be able to better address its urgent need to recapitalise, meet liquidity requirements, and strengthen its balance sheet to ride through the prolonged downturn in the offshore and marine industry. yes if your rights are in CDP and this POEMS account is linked to the CDP. 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. There are at least 3 options you can consider. Following the rights issue, it intends to distribute its entire stake in SembMarine to shareholders. This will then result in demerger between the two firms via a distribution in specie of SCI’s stake in the recapitalised Sembmarine to SCI shareholders. 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. dont need to do anything, can we subsribe to it online (same as the SIA shares) as i am currently overseas, I think CDP may allow that now. 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. What is your advice? 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 . Built a business to empower DIY investors to make better investments. Digging into Sembcorp Industries’ latest corporate presentation during their AGM on 21 May 2020, the marine business is making losses of S$85 million. 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. So what benefits or “rights” to buy are we talking about? PAY for the partial rights you want to convert within the stipulated dates. For example, the proceeds would be $20 after selling 10,000 rights. Hi Alvin, may I know how differently investors handle in terms of the procedures if those shares were being purchased via CPF or SRS in the first place? The downside is that you have to pay extra in this process. 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 Rights issue is one of the means for companies to raise money. (If used UOB kayhian brokerage account which normally commission fee more than $20+) So do you think still worth to sell it? The deal will involve a five-for-one rights issue and a subsequent share distribution that will see Sembcorp Industries and SembMarine parting ways. The last option is that you can subscribe to fewer rights than you were entitled. But commission can be $25 for the transaction. The issue price will be at S$0.20 per rights share . You can confirm with them. S$2.1 billion renounceable Rights Issue by Sembcorp Marine, 2. Rights Issue, Transaction Rationale and Related Updates, Sembcorp Industries and Sembcorp Marine jointly announced on 8 June 2020 a, recapitalisation of Sembcorp Marine through a S$2.1 billion renounceable rights issue (the “, ”), followed by a demerger of the two companies via a distribution in specie (the “. 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 . Please refer to our 10 September 2020 announcement at this link for the full details. 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). The transaction resulted in the demerger of Sembcorp Marine from Sembcorp Industries. Will Sembcorp Marine be debt-free from SCI after the demerger? Or subscribe it (pay additional) and ‘hope’ sembcorp marine company can get better? Do refer to the diagram above. 1. You can also subscribe by paying $0.20 to convert each right to a share in Sembcorp Marine. The rights issue will be on the basis of five Sembcorp Marine rights shares for every one share in Sembcorp Marine held by a shareholder. 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. Conducts the flagship Intelligent Investor Immersive program under Dr Wealth. You can pay for the conversion at the ATMs (shares held in CDP) or transfer to your broker (shares held in custodian). Thanks. Please don’t repeat the SIA renounceable rights and MCBs episode previously. Of the net proceeds, an amount of S$1.5 billion (representing the consideration for 7,500,000,000 Rights Shares subscribed for by SCI pursuant to the SCI Undertaking Agreement) has been allocated and will be utilised to repay (by way of set off) the outstanding principal of S$1.5 billion under the Subordinated Credit Facility in accordance with the stated use and the percentage allocated as disclosed in the Offer Information Statement. Simply multiply the Number of Share you own by 5 to get the number of rights you have. 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? when the rights given, there is already commission charge. BUY more Sembcorp Marine R (SGX:THFR) from the stock market. THE Sembcorp Marine (SMM) rights issue of shares to recapitalise the company was undersubscribed, with valid acceptances and excess applications received for 9.4 billion rights shares, or 90.2 per cent of the nearly 10.5 billion rights shares available. SCM’s underwriter will take it back and sell to Temasek? Hi Alvin, I just received the notice. The proceeds will be mainly used to replace existing debt that was mainly issued by parent Sembcorp Industries. If you need more information, you can refer to this where we explained what Sembcorp Marine and Sembcorp Industries wanted to do. The Sembcorp Marine rights will be trading on SGX today (19 Aug 2020). If you have 1,000 shares, you would be granted 5,000 rights. You can also subscribe to more rights than what you were given. But the management would often seek loans from banks and only resort to rights issue if debt is no longer a viable channel. Do refer to the diagram above. 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