First REIT

[Drizzt]

intellect what do you mean you have to go to the bank? sorry if i sound so noob.

[intellect]

No worries, we are all here to share what we know / our experience.
As it is a legal requirement that we need to use an agent bank for CPF investment, your agent bank act as your trustee. All the dividends and right entitlements will go the bank.

The bank will then send you a letter to tell you how much rights you are entitled to and you will have to fill up how much shares you want to subscribe and how much excess right you want to apply for.

Do take note for that you have to pay $2.5 per 1000 shares subject to a maximum of $25 per transaction
However, if you do not have enough $$$ in CPF, you need to pay $10 for each rights application per $1000 and $5 for each excess rights application per 1000 shares
(The above charges are valid for DBS bank as agent bank)

Next, you go to the bank and look for their investment officer, they will calculate how much you need to pay and they will proceed on with the paperwork.

Do take note that the letter from the bank will arrive much later than the letter from CDP (if you invest using cash) . So not to worry if you have not receive letter from the bank when others have already received letter from CDP (if they have invest using cash)

I hope that will help. Do post in the forum if you still have any queries. All forummers including myself will be glad to help.

[pianist]

just wonder if shareholder value might be destroyed with this rights issue?

[Drizzt]

share holder value is destroyed if this is an overvalued assets i think.

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intellect, thank you for the explanatin. that is what i believe as well. i am just not as good as describing it like you are.

[brt77]

Hi all,
Can someone share how we can estimate the price of the right when it begin trading on 8 Dec, assuming the price of first reits is still 0.95 before XD.

Tks

[mottainai]

Hi all,
Can someone share how we can estimate the price of the right when it begin trading on 8 Dec, assuming the price of first reits is still 0.95 before XD.

Tks

Hi brt77,

I will give it a try.

The rights issue is on a basis of 5 rights units (@$0.50 per unit) for every 4 existing units.

Assuming the last done price before ex-rights is $0.95 per unit, this will give a theoretical ex-rights price (TERP) of $0.70 per unit, calculated as follows:
[(5 x 0.5) + (4 x 0.95)]/(5+4) = $0.70 per unit.

To estimate the value of each 'nil-paid' rights unit, we subtract the TERP from the issue price of the rights unit, so we get $0.20 per unit.

However, do note that this is just an estimate.

Fellow forummers, do correct me if my workings are wrong. Thanks.

[cyborg]

yup. 100.

[Drizzt]

anybody wonder what a mkt correction will do to this rights issue? my analysis tells me only the 50cent after price will become more unattractive.

otherwise status quo, the ex-rights price will just become lower and the rights price will be lower.

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I think for folks who would like to know more about the healthcare sector in indonesia, the rights circular makes a very comprehensive reading.

you can read it at scrbd to preview without downloading it >>

Why you should read First REIT's rights offer circular if you are interested in Healthcare REITs

[Blackjack]

To me, the extent of disclosure and detailedness sends good signals that they don't disclose just for the sake of fulfilling an obligation, but rather do it for a purpose. That in itself sends good vibes (to me) even though it may not say anything about the attractiveness of the transaction. I personally go for good feel as a prerequisite before considering to invest in something, which may be pretty difficult to quantify. But I guess that's something very different from those who rely more heavily on other aspects of analysis.

On a separate note, I was just thinking that with the reit's consistent ability to acquire assets below valuation, would it be fair to first attribute a natural discount off the reported NAV to factor a realistic scenario, before discounting it further due to traditional discount for Indonesian assets?

Either way, the acquisition looks like a pretty good deal to me. Been waiting for some acquisition news to come for a rather long time I would say

[cookieguy]

I will be subscribing....to support the acqusitions

Better than management not being clear; for example putting out an impression of "oh....we need funds to capitalize on opportunities in the near future as economy improves and as well, provide adequate working capital".....my question is "what opportunities? you mean cash flow inadequate, lack of funding purposes?"