ARA LOGOS Logistics Trust

http://infopub.sgx.com/FileOpen/Launch%2...eID=469561

Another equity raising exercise. This time a 18 to 100 rights issue to lower its leverage ratio. Personally, I find the rights ratio weird as it seems to results in many unitholders getting odd lots. Why not a 1 to 5 rights issue to make the maths easy?

(04-09-2017, 10:10 PM)CY09 Wrote: http://infopub.sgx.com/FileOpen/Launch%2...eID=469561

Another equity raising exercise. This time a 18 to 100 rights issue to lower its leverage ratio. Personally, I find the rights ratio weird as it seems to results in many unitholders getting odd lots. Why not a 1 to 5 rights issue to make the maths easy?

Taking a look at its shareholding, there isn't alot of fractional rights that will be disregarded.

http://cache.listedcompany.com/shareholdings.html

Odd lots will most probably generate more trading (commissions) for brokers if OPMIs want to "round up". It might also generate more demand for folks to top up their odd lots, although the converse (OPMIs give up these odds lots) could be true. Generally, a company with a clear single/dual major shareholder/s stand to gain from such odd figures since they are ready to "mop up" the discounted shares coming from the odd lots, but that doesn't fit this case for Cache.

(04-09-2017, 10:10 PM)CY09 Wrote:  Personally, I find the rights ratio weird as it seems to results in many unitholders getting odd lots. Why not a 1 to 5 rights issue to make the maths easy?

The problem / issue is that many of these businessmen are superstitious. And 18 is a good number.....

You can always apply for excess rights shares to round up your odd lot entitlement?

(05-09-2017, 01:20 PM)HitandRun Wrote:

(04-09-2017, 10:10 PM)CY09 Wrote:  Personally, I find the rights ratio weird as it seems to results in many unitholders getting odd lots. Why not a 1 to 5 rights issue to make the maths easy?

The problem / issue is that many of these businessmen are superstitious. And 18 is a good number.....

Well, If i am GodFather, i would command my underlings to go and do a 168 for every 1000shares or a 88 for every 500 shares then. If superstitious, better to go "all the way"? (or I want the good omen, but scared people "laugh" at me?)

(05-09-2017, 03:22 PM)weijian Wrote: Well, If i am GodFather, i would command my underlings to go and do a 168 for every 1000shares or a 88 for every 500 shares then. If superstitious, better to go "all the way"? (or I want the good omen, but scared people "laugh" at me?)

You might laugh but I'm dead serious. 

I know enough of these businessmen to know that some of them take it very seriously. If you have the chance, just look at their car license plate, address (home & office), etc...

P.S. Personally, I do not share their obsession with numerology but it (the obsession) certainly exists.

(05-09-2017, 05:17 PM)HitandRun Wrote:

(05-09-2017, 03:22 PM)weijian Wrote: Well, If i am GodFather, i would command my underlings to go and do a 168 for every 1000shares or a 88 for every 500 shares then. If superstitious, better to go "all the way"? (or I want the good omen, but scared people "laugh" at me?)

You might laugh but I'm dead serious. 

I know enough of these businessmen to know that some of them take it very seriously. If you have the chance, just look at their car license plate, address (home & office), etc...

P.S. Personally, I do not share their obsession with numerology but it (the obsession) certainly exists.

hi HitandRun,
I am actually serious when i was typing this. I apologize if i had appear "you might laugh" to you. I was trying to put myself into a GodFather's shoe and decide how it would go ahead. Of course, all of us have our quirks and maybe "18" is one's lucky number for example. While i haven't had the (good) luck to rub shoulders with some of them, it wouldn't be strange to find auspicious numbers/meanings to their "car plates, house numbers, date of commencement, acquisition price etc). But for rights issue, i am thinking there might be more than meets the eye.

So what i did was to look at the last 1 year of rights issue ratio and their right subscription price to see whether there are any more "mainstream good/lucky" numbers:

- I excluded all <0.1 right price issues and there are a total of 16 companies. Out of this 16 companies, only 2 companies have a numerical "8" in their right price, and none have any (besides Cache) in their right ratio.
- Ascott Reit has a very nice rhythmic number --> (29 for 100, price = 0.919) --> so it might mean something here?
- It is interesting to note that out of the 5 reits/trusts, 4 of them have weird ratios that would end up in odd lots (bolded below). CDL is the only exception at "20 for 100". There must be something systematic on-going. What is it exactly?
- As for the remaining 12 non reit/trust, 3 of them (MaxiCash, SinoGrandness, HMI) will have odd lots.

Manulife REIT (41 for 100, price = 0.695)
http://infopub.sgx.com/Apps?A=COW_CorpAn...88d9916688

NutryFarm (1 for 2, price = 0.1)
http://infopub.sgx.com/Apps?A=COW_CorpAn...4442435759

CDL Hospitality Trust (20 for 100, price = 1.28)
http://infopub.sgx.com/Apps?A=COW_CorpAn...19c6599c4a

PanUnited (1 for 4, price = 0.43)
http://infopub.sgx.com/Apps?A=COW_CorpAn...de13c9f34a

MaxiCash (1 for 6, price = 0.17)
http://infopub.sgx.com/Apps?A=COW_CorpAn...20b8ec29f8

HMI (11 for 200, price = 0.57)
http://infopub.sgx.com/Apps?A=COW_CorpAn...9963f03e99

Ascott Reit (29 for 100, price = 0.919)
http://infopub.sgx.com/Apps?A=COW_CorpAn...bf244aa78a

SinoGrandness (5 for 11, price = 0.21)
http://infopub.sgx.com/Apps?A=COW_CorpAn...21306aee70

Tat Hong (1 for 5, price = 0.33)
http://infopub.sgx.com/Apps?A=COW_CorpAn...bd6279d6b6

Sabana REIT (42 for 100, price = 0.258)
http://infopub.sgx.com/Apps?A=COW_CorpAn...dd1db4738a

ASL Marine (1 for 2, price = 0.12)
http://infopub.sgx.com/Apps?A=COW_CorpAn...5181c51634

China Flexible Pack (2 for 1, price = 0.7)
http://infopub.sgx.com/Apps?A=COW_CorpAn...90a99c3607

GRP (1 for 2, price = 0.25)
http://infopub.sgx.com/Apps?A=COW_CorpAn...0ea3e6a454

Frasers Hospitality Trust (32 for 100, price = 0.603)
http://infopub.sgx.com/Apps?A=COW_CorpAn...ae959cb37f

IFS Capital (3 for 2, price = 0.22)
http://infopub.sgx.com/Apps?A=COW_CorpAn...d19e22ca08

Ramba Energy (1 for 5, price = 0.2)
http://infopub.sgx.com/Apps?A=COW_CorpAn...f18b4bdb2e

I noticed for some companies, even when they are far below the regulatory limit of 45% gearing ratio, they still go after shareholders for money, be it with private placements or with preferential offerings (Rights Issues). One very good eg was Keppel DC REIT, the second-lowest gearing REIT in the SG REIT universe,...

Wondered why is this so ?

Who runs CLT?

Is it a mere coincidence that ARA also did a rights issue at 18 for 100 in 2015?

Is it a mere coincidence that ARA was privatised at $1.78

Is it a mere coincidence that CLT was listed at the price of $0.88?

I could point out more but I reckon I have made my point. 

Readers can draw their own conclusions.

(06-09-2017, 08:05 AM)HitandRun Wrote: Who runs CLT?

Is it a mere coincidence that ARA also did a rights issue at 18 for 100 in 2015?

Is it a mere coincidence that ARA was privatised at $1.78

Is it a mere coincidence that CLT was listed at the price of $0.88?

I could point out more but I reckon I have made my point. 

Readers can draw their own conclusions.

hi HitandRun,
I am not disputing that there could be a meaning behind those numbers for CLT on their 18 for 100 rights issue @0.632, a 28.2% discount to last close of 0.88.

But the crux of the issue here that both me and CY09 is highlighting, is not the exact "18", but more of the "odd" lot issue (for example, demonstrated in 4 out of the 5 REITs listed earlier). I would choose to look in a wider sample of companies, rather than zoom in onto a specific company to see what i am looking for (avoid confirmation bias)