A couple of observations:
- Gross proceeds are ~17.86mil and net proceeds are ~17.5mil. A cool 360k for Maybank for this placement and the 2% charge doesn't seem to be exorbitantly high that indicates that they have trouble selling (For example, i could contrast it to the extreme cases like the ~8% of gross proceeds that Goldman Sachs charged 1MDB for selling bonds, or the ~25% below par that Eratat paid to issue CBs)
- These treasury shares were bought and sold with real money. I suppose it would probably indicate the money is at company level (SG) and not going back to China any time soon?
- The company did not reveal the average cost of its treasury shares and i didn't follow it closely but looking at the last 5 years' price chart, they should have made at least 50% from cost or ~5mil. If all these profit is really distributed as dividends (as indicated in the announcement), shareholders should profit more than simply cancelling the treasury shares (buy low, sell high). I would try to follow up on this to prove it mathematically when i have the time.
- If all these 17.5mil is really distributed as dividends ONE TIME, then it would be a big GREEN flag ("i do what i say").
- Gross proceeds are ~17.86mil and net proceeds are ~17.5mil. A cool 360k for Maybank for this placement and the 2% charge doesn't seem to be exorbitantly high that indicates that they have trouble selling (For example, i could contrast it to the extreme cases like the ~8% of gross proceeds that Goldman Sachs charged 1MDB for selling bonds, or the ~25% below par that Eratat paid to issue CBs)
- These treasury shares were bought and sold with real money. I suppose it would probably indicate the money is at company level (SG) and not going back to China any time soon?
- The company did not reveal the average cost of its treasury shares and i didn't follow it closely but looking at the last 5 years' price chart, they should have made at least 50% from cost or ~5mil. If all these profit is really distributed as dividends (as indicated in the announcement), shareholders should profit more than simply cancelling the treasury shares (buy low, sell high). I would try to follow up on this to prove it mathematically when i have the time.
- If all these 17.5mil is really distributed as dividends ONE TIME, then it would be a big GREEN flag ("i do what i say").