I checked my SCB trading account and was pleasantly surprised to receive more excess shares than I have hoped for - 1,100 entitled and 600 excess. I read LP post and it never occurred to me that since my entitled rights is already rounded to 100, there is a possibility that I will receive zero excess rights.
I checked with a few friends who applied for Croesus Rights and this is what I gathered:
Entitled: 4,400, Excess: 1,200
Entitled: 2,200, Excess: 900
Entitled: 1,100, Excess: 600
Entitled: 220, Excess: 480
Seems like there is a pattern here. For every 1,100 entitled shares, you will have 300 excess rights. I leave the maths to you.
The person who owns one lot benefits the most since his excess rights is more than double his entitled rights, and unless you own only one lot, chances of the excess rights exceeding the amount of entitled rights is near zero.
While the rights results was better than my expectation, it is still too early to tell how I fared overall. My average purchase price is now $0.815 and although it is lower that today's closing price, it is still higher than the TERP. If there is no drastic change in their dividends, I will expect a better yield than my current 7%.
Aiyo, I only applied for 280 rights with my 1000 shares! I should have applied for more next time… haha, now I know!
Hi GMGH,
Ok la. Although you could have gotten more, having some excess is better than no excess.
True that :)