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
Seedly logo
Seedly logo
Ā 

SeedlyTV S2E05

Stocks Discussion

Online Brokerages

Investments

COVID-19

Singapore Airlines (SIA)

Travel

Anonymous

Asked 3w ago

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?

0 comments

1 answer

Answer Now

Answers (1)

Sort By

Tay WenHao
Tay WenHao
Top Contributor

Top Contributor (May)

Level 7. Grand Master
Answered 2w ago

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.

0 comments

šŸ‘ 0