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22-11-2013, 01:27 PM
if got advance distribution you think the placement price will still be priced the same at 0.405 to 0.41???
obviously not.. its more likely to be placed at 0.395 to 0.40
and today the stock it would drop even more maybe even to 0.40 instead of just 0.415
anyway I lazy to argue with you la, in the end of the day being a shareholder of lippo mall sucks. Better to sell now and take a small loss then to continue holding and slowly being sucked dry by the lousy management
obviously not.. its more likely to be placed at 0.395 to 0.40
and today the stock it would drop even more maybe even to 0.40 instead of just 0.415
anyway I lazy to argue with you la, in the end of the day being a shareholder of lippo mall sucks. Better to sell now and take a small loss then to continue holding and slowly being sucked dry by the lousy management
(22-11-2013, 12:56 PM)sentosaubin Wrote: Let me give you another example
lets say every month is 0.3 cent distribution before private placement.
with no private placement, we should expect a 0.9c dividend for Oct-Dec. Let's say that private placement happen on 1-Dec for the sake of simplicity and diluted distribution per month becomes 0.25c.
Advance Distribution case
Existing unitholder Oct-Dec dividend = 0.3c (Oct)+ 0.3c (Nov) + 0.25c(Dec) = 0.85c
New unitholder Dec Dividend only = 0.25c for the risk they only owned from 1-Dec
For Lippo cases:
Existing unitholder Oct-Dec distribution = 0.25c (Oct)+ 0.25c (Nov) + 0.25c(Dec) = 0.75c (a reduction of 0.10c)
New unitholder Oct-Dec distribution = = 0.3c (Oct)+ 0.3c (Nov) + 0.25c(Dec) = 0.75c (an increase of 0.50c)
Are you saying that an increase of 0.50c is priced in the private placement (ie: higher price)? The answer is no, private placement is done at 40.5c (5% discount) compared to market price average of 43c
And, new unitholder cannot get 5c distribution as a deal of private placement... as the new unit is ranked pari passu..
(22-11-2013, 12:43 PM)ForeverAlone Wrote: sentosaubin
I give you an extreme example
imagine if the new private investors are given 5 cents distribution instead, way more than what the existing shareholders are getting.
are they eating away your distribution?
the answer is No
Because their placement cost will be priced much higher!
you are not using logic but instead your emotions to think~
At the end of the day, the new private investors are NOT eating into your distribution
Its just that your stake in those assets are dilution by the new placement shares.
