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Got it, thanks for the clarification!
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NTUC Co-ops (namely Comfort, Fairprice and Income) were money-faced/profit-oriented during early 2000s. I think there were a shift back to social enterprises roots (bottom/triple bottom lines) in past >5 years. Also provided a counterbalance to the competitive pressure in daily essentials.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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For those who missed the informational webinar last Friday, here is a short snapshot of what's of interest:
1. They will give every member a 1 time free TPD insurance coverage worth $52,000 for 3 yrs effective from corporatisation.
2. They will "look into" to help shareholders to facilitate for them to buy/sell their privately held shares base on willing seller/willing buyer basis. Income will not be involved in the transactions. So we could well see Income shares being traded pretty soon off the exchange ie later 2022. Need to wait and see how it's going to work. Anyone with experience in share dealing of those delisted co's pls share your expertise and experience.
Personally I don't mine picking up some if it's at a good price and wait for the eventual IPO. They did not commit to an IPO but I think they need it to raise capital efficiently. (See below about capital raising) I expect there will be a number of sellers as many of those members are quite old (70's and 80's) and want to cash out. So what you think is a good price to buy into? To me $20/share would be attractive as it would be 50% discount(bcos it's illiquid) to BV and at 3% div (cut down from usual 6%) and with potential to grow. Treat it as a convertible bond.
3. They said there won't be any share dilution in their capital raising. As they need more capital for their expansion and to meet MAS capital requirements, only can come from (Placement will be out): Rights issue , Borrowings (bond issue) .
Rights issue will not be receptive given that it is private co.
Some members wanted an ex-gratia payment due to prior yrs when our share was diluted by institutional members. I don't hold too much hope on this. Anything extra would be a bonus.
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Hi Jackie, firstly there are not many shareholders of Income shares to begin and even those who hold them are senior in yrs and not many in this forum or any forum as they are not that internet savy.
I would encourage you to do the followings if you are concern about this corp exercise:
1. write to them directly to express your concern. They said they are committed to reply all queries.
What you can do is request the board to insert a share buyback mandate in the next AGM. The mandate would require the co to buy back shares from shareholders at $10 or BV whichever is the lower. This would essentially return to the status quo before corportisation.
2. attend the EGM scheduled on Feb 15th and raise your concerns again if you don't get a satisfactory to your written letter.
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At the sgx there are many blue chip stock trading around $5 a piece (sia? good potential?. Would investors even look at this 'private' stock for $10? much less $40???
My answer is Yes. I would be interested. This is akin to investing in private equity or pre-IPO investment. It's a whole set of alternative asset class. I think Temasek would be very interested in coming in if given the opportunity. Don't forget this NTUC we are talking about and not some private business venture. There is a moral hazard involved and govt cannot let it fail.
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Anybody has access to AltaX(only available to HNWI)? The recent Income shares traded through POEMs closed last mth. I wonder what was was the traded price.