Folks following this blog would know that I applied for First REIT 5 for 4 rights issue.
In addition to that I Applied for 20000 excess rights, paying SGD10,000 for this.
Today on the 31st Dec 2010 is the trading day for all these rights and a check on my CDP account shows that I got some excess rights!
It’s a welcome surprise because, First REITs is strongly held I feel and not likely to have so much excess rights.
My previous experience with Sing Investment was disappointing.
Anyway, the 5 for 4 rights issue left me with 250 shares of odd First REIT stock.
But a check of my CDP account shows that they have given me a total of 2750 more shares. So 2750/20000 = 13.5% allocation.
Why is Excess Rights a big deal?
For those not familiar with excess rights, it is basically a lottery to see if there are outstanding stocks of shares that existing shareholders would not want to hold and can be secured for other investors.
So for this 2750 share I will pay $0.50 for them. The current price trading is $0.705. Which means that like IPO shares without doing anything, you get a 41% return on these shares.
So effectively I made $563.75 dollars just like that.
How to check how much excess rights you have got
Likely you can’t tell how much excess rights you have by looking at the amount refunded in your bank account.
Go to http://www.cdp.com.sg and login to check. Go to E-Statements > Holdings.
I hope you guys got more than I have.
Great New Year’s Gift!
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