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hi ghchua,
To expand onto what VB sgpianolessons mentioned about rights issue:
Nov 2022 at $2 (100% subscription, 30% discount), and May 2018 at $3 (150% oversubscribed, 25% discount)
For minorities who have lost ~50% of initial capital since 2014, I am not sure if putting in more money in 2018 and 2022 to reduce one's cost base (and hence lower% of capital losses) is good comfort.
Of course, as a minority shareholder, the lower the cost base, the bigger the gains if the buildings/land are eventually monetized in the future. Whether is it really probable or when will it happen, that is what separates good and average investors. I have to admit I am just an average investor without 10year timeframe kind of patience.
Talking about potential upcoming refurbishment for its 2 Spore hotels, It will be cold comfort for minorities because that just implies more and new CAPEX is required after it completed its Msian properties' upgrade. Been capital intensive, Hotel Royal doesn't generate a lot of cash and only 3mil (out of 40mil) remains of its 2022 rights' issue proceeds (as per end FY23 results). More rights in the coming future?
Or the path of the middle - Selling 1 of its Spore hotels to fund a major upgrade for the remaining one? The Newton one looks like a good candidate since it is surrounded by residential developments but the boat seems to have passed for CCR property?
Does the Hotel Royal towkay has a history of asset divestments and rewarding minorities?
To expand onto what VB sgpianolessons mentioned about rights issue:
Nov 2022 at $2 (100% subscription, 30% discount), and May 2018 at $3 (150% oversubscribed, 25% discount)
For minorities who have lost ~50% of initial capital since 2014, I am not sure if putting in more money in 2018 and 2022 to reduce one's cost base (and hence lower% of capital losses) is good comfort.
Of course, as a minority shareholder, the lower the cost base, the bigger the gains if the buildings/land are eventually monetized in the future. Whether is it really probable or when will it happen, that is what separates good and average investors. I have to admit I am just an average investor without 10year timeframe kind of patience.
Talking about potential upcoming refurbishment for its 2 Spore hotels, It will be cold comfort for minorities because that just implies more and new CAPEX is required after it completed its Msian properties' upgrade. Been capital intensive, Hotel Royal doesn't generate a lot of cash and only 3mil (out of 40mil) remains of its 2022 rights' issue proceeds (as per end FY23 results). More rights in the coming future?
Or the path of the middle - Selling 1 of its Spore hotels to fund a major upgrade for the remaining one? The Newton one looks like a good candidate since it is surrounded by residential developments but the boat seems to have passed for CCR property?
Does the Hotel Royal towkay has a history of asset divestments and rewarding minorities?