Yongnam W121214   

Question on conversion to mother share

Shadowmoon, I've been busy and away for a while. Haven't been reading this for a while. Consider this, potentially 340 million warrants that can be converted to shares before 14 Dec 2012, this will have a diluting effect on the overall share price. So naturally, investors don't want that to happen. Warrants holders are hoping that the share price will be above 25 cents before it makes sense for them to exercise this conversion. So how? Everyone adopt a wait and see attitude. They will make sure they don't buy the shares for price above 25 cents now, pushing up the share price and inviting the warrants holders to come in? When they do come in, their share price will go down immediately. So it is quite dumb to push the share up now by buying, only to suffer loss. So, what makes me think that the share price will go up after 14 Dec? Well, the threat of the dilution is gone (assuming the 340 million warrants are not converted to shares). Also, the Net Tangible Asset (NTA) of the last financial report is 24.8 cents per share. So, the potential price movement is up. Anyone have any views on this?

 

Hi,

this might be irrelevant now as the market price is below the exercise price hence no one in the right sense of mind will exercise the warrants...


but considering if the market price rises above the exercise price, do we need to explicitly convert the warrants to shares? or will they automatically credit the profit into our account (i.e. profit = exercise price - market price)?

just for knowledge. thanks

 

Ha, sorry I'm not sure as i don't play warrant...

shadowmoon      ( Date: 22-Sep-2012 14:10) Posted: sure? But what the morale behind bro? HugoLee      ( Date: 21-Sep-2012 17:49) Posted: 14 Dec 2012 approaching.  YN is kept below $0.24 because of this warrant!  Everyone is waiting for it to expire and keeping the price low!

 

sure? But what the morale behind bro?

HugoLee      ( Date: 21-Sep-2012 17:49) Posted: 14 Dec 2012 approaching.  YN is kept below $0.24 because of this warrant!  Everyone is waiting for it to expire and keeping the price low!

 

14 Dec 2012 approaching.  YN is kept below $0.24 because of this warrant!  Everyone is waiting for it to expire and keeping the price low!

 

tiandi, thanks. I appreciate all the time and effort for your reply!

 

pantoo

if you are in doubt, always call the CDP hotline to enquire. But since you know this warrant, you can call the Warrant Agent to enquire. 

The underlying stock is Yongnam Holdings Limited and it is listed in SGX in Singapore.

Warrant agent is TRICOR BARBINDER SHARE REGISTRATION SVCS
It is easy for you to give them a call if you are interested to learn from this warrant information or the procedure and time ( usually 5 days) to convert from warrant to mother share.

you can check from sgx website, a few clicks should bring you to this link
http://info.sgx.com/warrants.nsf/revamp+new+warrants+by+name+all/YONGNAM+HOLDINGS+LTD+W121214

i copy here below for you. A summary of details are here so you know this warrant expiry date is 14Deci year 2012, or as you are more familiar with SGX standard convention, you will notice that W121214 in Wyymmdd format stands for expiry date of year 2012, December, 14. so at one look you know when it is the expiry date.




YONGNAM HOLDINGS LTD W121214

Last Date/ Time to submit Subscription Notice	14 DEC 2012 05:00 PM
Listing Date	21 DEC 2007
Expiry Date	14 DEC 2012
Outstanding Balance	365,131,494
Price ($) as at 2007-12-27	0.100
High for the year ($)	0.110
Low for the year ($)	0.085
High for the month ($)	0.110
Low for the month ($)	0.085
Exercise Price	SGD 0.25000
Underlying Stock	YONGNAM HOLDINGS LIMITED
Underlying Stock Price ($) as at 2007-12-27	0.300
Conversion Ratio	1 share(s) : 1 warrant(s)
Cash ($)	0.000
Premium/(Discount) (%) (Cash)	16.67
Premium/(Discount) (%) (Bonds)
Gearing (x)	3.00
Remarks

Warrant Agent
Name	TRICOR BARBINDER SHARE REGISTRATION SVCS
Telephone No.	6236 3333
Fax No.	6236 4399
Address	8 CROSS STREET #11-00 PWC BUILDING SINGAPORE 048424

 

 

By the way... how do we know if a particular warrant can be exercised before expiration? The Yongnam warrant didn't state if its European or American warrants. I'm quite new to this.... sorry and thanks

 

Thanks tiandi!

 

pantoo

you may go to cdp website to read and understand the procedure of conversion, here is the link

http://www.cdp.com.sg/faq/warrant_faq1.html
 

 

Hi guys,

I saw from other forums that it is possible to convert this warrant to the mother share. How can we go about doing this? I always thought that conversion to mother share can only be done upon expiration (European warrants). Hope you guys could shed some light. Thanks!