facebookCould someone give a simplified explanation of the economics of how the recent renounceable rights issue and issuance of MCB affect the value of SIA shares and its value as a long term investment? - Seedly
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joeltkin

joeltkin

Level 3

30 Mar 2020

Could someone give a simplified explanation of the economics of how the recent renounceable rights issue and issuance of MCB affect the value of SIA shares and its value as a long term investment?

Could someone give a simplified explanation of the economics of how the recent renounceable rights issue and issuance of MCB affects the value of SIA shares and its value as a long term investment?

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    Discussion (1)

    What are your thoughts?

    Basically, this rights dilute your shares. if you subscribe it, you retain the supposed value. but if you don't your shares are worth less now. the dilution is 60%. fair value of SIA is now ~$4.40. so if you dont subscribe, your paper loss would be your average price - $4.40.

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