I recently bought the SIA shares after the rights issued at a price of 4.40 but realised the theoretical ex-rights price should be around $4.17. What should I do? - Seedly
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Anonymous

Asked on 14 May 2020

I recently bought the SIA shares after the rights issued at a price of 4.40 but realised the theoretical ex-rights price should be around $4.17. What should I do?

To make up for the overvaluation, should I purchase the rights shares/MCBs?

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    Tay WenHao

    Tay WenHao

    Level 7. Grand Master

    Answered on 22 May 2020

    Hi. Since you bought the shares after ex rights, you dont have any rights to subscribe. If you meant to purchase the rights on SGX at additional costs on top of the subscription cost of $3/unit, its not worth it cus by then the cost of rights will be about the same as the market price.

    E.g. share price $3.50, the rights will cost $0.50 + $3 to subscribe to the rights.

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