It's human instinct to want fairness and i am all for fairness.
In one of the facebook group " Remove Sabana Reit" ,a member by the name of Mr Goh mentioned that Sabana's rights are renounceable while Soilbuild rights are non-renounceable. This may explain why Sabana's rights expense was 12 times more expensive than Soilbuild.
Renounceable rights can be traded through SGX while non-renounceable rights cannot be traded on SGX. Naturally, since one has to engage investment bankers to list these tradable rights on SGX , it will cost more.
Fair enough.
However, it doesn't explain why the expenses were 4.2% when the fees paid to the Investment bankers were only 3.6%.
Where did the 0.6% ( remaining of the expense) of the $80.2 million ( $481,200) go to?
Take note that 0.6% is still higher than the 0.34% total rights ...
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