OCBC Rights Issue – Prospectus out on 27 August 2014

This is a continuation of my blog post on the subject matter dated 22 August.

The prospectus for the Rights Issue was lodged on 27 August. Trading of the Rights (OCBC Rights) started today (1 September). For shareholders entitled to the Rights Issue can sell their Rights to it on the Singapore Exchange (OCBC Rights). The last traded price for OCBC Rights was $2.14 at the end of today. Last date of trading OCBC Rights is 9 September 5.00 pm.

Last traded price of OCBC Bank today was $9.84. This price was not far from the theoretical ex-right price of $9.92 (see my earlier post).

To apply for Rights Share, shareholders must pay $7.65 per share. The OCBC Rights has an underlying value of $2.14 based on today’s trading. Adding $7.65 + $2.14 = $9.79. This value is close to $9.84 which was the share price of OCBC today.

For shareholders, you must ascertain that you have the rights to apply for the Rights Share. (OCBC Shares traded ex-rights was on 25 August 9.00 am. If you bought OCBC with Rights attached before 25 August, you are entitled to the Rights Issue.) Best to ascertain from offer letters sent to entitled shareholders.

Last date for acceptance of the Rights Share is 15 September 5 pm (9.30 pm if electronic applications).

OCBC has made arrangement with Singapore Exchange to allow trading of OCBC Rights Share in lots of 125 units per lot for a period of one month from 29 September. For example, one can accumulate 8 times 125 units to bring holding to 1000 units board lot.

Status of OCBC Rights Share ranks pari passu in all respect with the then Issued Shares of OCBC …. (See prospectus).

Copyright © 2014, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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