- If I am allocated only with my entitled rights (175), I would have made a loss of 4.4% (after brokerage)
- I am not expecting to end up with odd lots. This shows that the 1 lot strategy does not always work.
- While one may end up with odd lots, I believe they will round it up to the nearest hundred.
- If I were to own 6 lots before the rights issue and got (1.05 entitled + 0.95 excess) rights, I would have made a loss (after brokerage).
- Using SCB online trading is a must to minimize brokerage fee.
In the end I was allocated 500 shares (175 entitled and 325 excess) based on the 1 lot I owned. I was not expecting to end up with odd lot. I'm not sure if it is due to SCB online trading or I own too few shares to begin with. I called up SCB on how I could sell off my odd lot and was informed that I have to do so manually by calling into their customer hotline during office hours. After a verbal consent of a $25 minimum brokerage fee, they will then seek 'approval' before getting the broker to contact me. When probed further on this 'approval' procedure, I was told that some department head has to approve my request first.
Here's a quick calculation of the entire exercise.
Total shares owned: 1,500 units
Total paid (including brokerage): $1955.38
Current Share Value ($1.330 as of 25 March): $1,995.00
Total profit / loss (including min: $25 brokerage): $9.83
Some key take away: