Overseas Chinese Banking Corporation (OCBC Bank)

[kbl]

14-02-2014 10:52:50
OCBC sees loan growth in "low teens" in 2014


SINGAPORE, Feb 14 (Reuters) - Oversea-Chinese Banking Corp Ltd expects loan growth to be in the percentage of "low teens" in 2014 after loans expanded at an 18 percent pace last year, CEO Samuel Tsien said at an earnings briefing.

He said he expects the net interest margins are likely to be stable at current levels of about 1.6 percent.

(Reporting by Saeed Azhar and Laura Philomin; Editing by Matt Driskill) ((Saeed.Azhar@thomsonreuters.com)(+65-64035664)(Reuters Messaging: saeed.azhar.reuters.com@reuters.net)) Keywords: OCBC LOANS/


https://sg.uobkayhian.com/page/SLQG_News...D=20220304

[AlphaQuant]

looking at the steep discount offered for the scrip dividend (hence enticing people to skip cash), the WingHang deal is as good as concluded (if anyone still has any doubt abt it).

[felixleong]

In regards to the Wing Hang acquisition, I've got a feeling that they might do placement to institutional investors instead of a rights issue. The Lee family owns close to 30% of OCBC, I really can't imagine them putting more $$ into this company. They seem more like the kind to sit on their investment and slowly collect the returns.

Well, I am definitely against placement to 3rd party investor, for 2 reasons :

1. Placement usually is done with a substantial discount to market price. So why give the discount or rather benefits to an outsider rather than the faithful shareholders.

2. If they decide to go for right issue, it would not be very heavy handed type one, may be 1 right for for every 5 shares ? ( Say at $8 ? )

Assume you have 1 lot of OCBC at hand, to subscribe for 200 shares at say $8 will require you to cough out another $1600 which I believe would not be very difficult for ordinary retail investor.

If you do not like to take up the right ?
Just sell the rights at the open market for a profit lor !
Some one else would be happy to pick it up.

Ya I agree that rights would be better for retail investors. Looking at the recent trend, like CIMB which raised 1.1bil in jan using placement, I just felt higher probability of OCBC doing placement instead of rights. Maybe that is also why OCBC dropped so much this year.

[Layman A]

In regards to the Wing Hang acquisition, I've got a feeling that they might do placement to institutional investors instead of a rights issue. The Lee family owns close to 30% of OCBC, I really can't imagine them putting more $$ into this company. They seem more like the kind to sit on their investment and slowly collect the returns.

Well, I am definitely against placement to 3rd party investor, for 2 reasons :

1. Placement usually is done with a substantial discount to market price. So why give the discount or rather benefits to an outsider rather than the faithful shareholders.

2. If they decide to go for right issue, it would not be very heavy handed type one, may be 1 right for for every 5 shares ? ( Say at $8 ? )

Assume you have 1 lot of OCBC at hand, to subscribe for 200 shares at say $8 will require you to cough out another $1600 which I believe would not be very difficult for ordinary retail investor.

If you do not like to take up the right ?
Just sell the rights at the open market for a profit lor !
Some one else would be happy to pick it up.

Ya I agree that rights would be better for retail investors. Looking at the recent trend, like CIMB which raised 1.1bil in jan using placement, I just felt higher probability of OCBC doing placement instead of rights. Maybe that is also why OCBC dropped so much this year.

I don't think the price is due to placement ( nothing is concrete yet ).
It is due to the relatively high acquisition price ( 1.9 to 2X P/B ) of Wing Hang.

Unfortunately the Offer announcement was followed by the massive funds sell off in the region ( DBS and UOB also drop alot ), that why OCBC price was beaten down so badly.

[kbl]

looking at the steep discount offered for the scrip dividend (hence enticing people to skip cash), the WingHang deal is as good as concluded (if anyone still has any doubt abt it).

hi AlphaQuant San, a 10% discount offered for the scrip dividend is normal. You can check the record for the past few years.

[felixleong]

In regards to the Wing Hang acquisition, I've got a feeling that they might do placement to institutional investors instead of a rights issue. The Lee family owns close to 30% of OCBC, I really can't imagine them putting more $$ into this company. They seem more like the kind to sit on their investment and slowly collect the returns.

Well, I am definitely against placement to 3rd party investor, for 2 reasons :

1. Placement usually is done with a substantial discount to market price. So why give the discount or rather benefits to an outsider rather than the faithful shareholders.

2. If they decide to go for right issue, it would not be very heavy handed type one, may be 1 right for for every 5 shares ? ( Say at $8 ? )

Assume you have 1 lot of OCBC at hand, to subscribe for 200 shares at say $8 will require you to cough out another $1600 which I believe would not be very difficult for ordinary retail investor.

If you do not like to take up the right ?
Just sell the rights at the open market for a profit lor !
Some one else would be happy to pick it up.

Ya I agree that rights would be better for retail investors. Looking at the recent trend, like CIMB which raised 1.1bil in jan using placement, I just felt higher probability of OCBC doing placement instead of rights. Maybe that is also why OCBC dropped so much this year.

I don't think the price is due to placement ( nothing is concrete yet ).
It is due to the relatively high acquisition price ( 1.9 to 2X P/B ) of Wing Hang.

Unfortunately the Offer announcement was followed by the massive funds sell off in the region ( DBS and UOB also drop alot ), that why OCBC price was beaten down so badly.

Ya, overall its the dilution of shareholder's earnings per share.

[felixleong]

anyway next month the details for their acquisition of Wing Hang Bank should be out, just cross our fingers and wait for the announcement ^^

[pubster]

I just bought 4 lots through CPF early this week as I feel the price is attractive.

But I never bought any stocks which offer scrip dividends before. I will definitely be interested in the picking up in terms of scrip.

Can any kind soul advise me on how and what I need to do? Also any problems I might faced in the future if I decide to offload the stock.

Very sorry for posting such a noob question here...

[Layman A]

I just bought 4 lots through CPF early this week as I feel the price is attractive.

But I never bought any stocks which offer scrip dividends before. I will definitely be interested in the picking up in terms of scrip.

Can any kind soul advise me on how and what I need to do? Also any problems I might faced in the future if I decide to offload the stock.

Very sorry for posting such a noob question here...

They will send you the form for taking up the script dividend.

You have the option of taking up one time script dividend, or
taking up script dividend for the rest of dividends payment.

Just tick the appropriate box and mail back to them.

As for selling the loose shares from the script dividend ( eg 4035 shares ),
you can call your remisiers or broker to transact on your behalf.

[pubster]

I just bought 4 lots through CPF early this week as I feel the price is attractive.

But I never bought any stocks which offer scrip dividends before. I will definitely be interested in the picking up in terms of scrip.

Can any kind soul advise me on how and what I need to do? Also any problems I might faced in the future if I decide to offload the stock.

Very sorry for posting such a noob question here...

They will send you the form for taking up the script dividend.

You have the option of taking up one time script dividend, or
taking up script dividend for the rest of dividends payment.

Just tick the appropriate box and mail back to them.

As for selling the loose shares from the script dividend ( eg 4035 shares ),
you can call your remisiers or broker to transact on your behalf.

Thank you so much for your advice.

So the agent bank for my CPF account will send me the form? If there is a right issue, my agent bank for CPF will also send me the forms right and the amount will be deducted from my CPF, right?

Guess I will contact my remisier to help me if I need to offload these odd lots counter...

Thank you once again