Last year, SCI granted SCM a subordinated loan facility. Through the Rights Issue, we will repay, including by way of set-off, this S$1.5 billion. determined by Sembcorp Marine. With a negligible difference between the open market and rights prices, there was little incentive for shareholders to take up the rights. Startree is a wholly owned subsidiary of Sembcorp's biggest shareholder Temasek, which will now hold a direct stake in SembMarine. I also participated in SIA rights issue, which I gonna say is fun. Sembcorp Marine - RHB Invest 2020-06-09: Stronger Balance Sheet Post Rights; Keep BUY. Sembcorp Marine’s EX-rights issue price at S$0.308. Rebuilding Portfolios . 4. You can see that taking up the rights will lower your breakeven price quite substantially. But a log-in is still required for our PDFs. buy 5 Rights Shares @ $0.20 per share, which means you fork out total $1.00. Sembcorp Marine is a leading global marine and offshore engineering group, specialising in a full spectrum of integrated solutions in ship repair, shipbuilding, ship conversion, rig building and offshore engineering & construction. However, the medium-term share price trend for Sembcorp Marine remains cloudy, particularly when shares are made available for Sembcorp Industries public shareholders to be sold in the open market. Will Sembcorp Marine be debt-free from SCI after the demerger? 2. WHAT ARE MY OPTIONS REGARDING THESE RIGHTS SHARES? This is not to acquire some assets but to re-capitalize SMM. SHAREHOLDERS of Sembcorp Marine (SMM) have voted overwhelmingly in favour of the two resolutions at the extraordinary general meeting (EGM) under the proposed S$2.1 billion recapitalisation plan that will see it demerge from its parent company, Sembcorp Industries (SCI). Sembcorp Marine stake: S$0.948. The 1.03 billion unsubscribed rights shares will be mopped up by Startree, as per the sub-underwriting agreement. Once confirmed and submitted, you will receive a receipt. PART II: HOW TO SELL OFF YOUR RIGHTS SHARES. Sembcorp Marine (SCM) is seeking to raise S$2.1 billion by issuing 5 rights shares for every 1 share owned, at a conversion price of S$0.20 per share. You must have sufficient CPF/SRS funds to accept the Rights Shares. Is SembCorp Industries a Good Buy Now? Rights Shares in CDP Sembcorp Industries and Sembcorp Marine jointly announced on 8 June 2020 a transaction involving the recapitalisation of Sembcorp Marine through a S$2.1 billion renounceable rights issue (the “Rights Issue”), followed by a demerger of the two companies via a distribution in specie (the “SCI Distribution”) of Sembcorp Industries’ stake in the recapitalised Sembcorp Marine to Sembcorp Industries … Investor Relations. Important dates to note. The Sembcorp Marine (SembMarine) rights issue of shares to recapitalise the company was undersubscribed, with valid acceptances and excess applications received for 9.4 billion rights … You can pay $1,000 to convert the rights to shares and you will end up with a total of 6,000 shares. For example, if Sembcorp Marine price is $0.23, the rights will usually trade around $0.03. Next up, we look at Sembcorp Industries to see if its a good buy now. Net Gearing to Plunge Post-rights Issue. All rights reserved. They used to be the darlings of the Singapore stock market when the oil & gas industry has seen better days. SEMBCORP MARINE RIGHTS ISSUE - What is it about? Generally, the rights trading price is the difference between Sembcorp Marine price and rights price ($0.20). Last month we had SIA offering rights issue. If you have 1,000 shares, you would be granted 5,000 rights. SEMBCORP MARINE LTD (S51.SI) Corporate Action - Dividends / Rights / Splits of Sembcorp Marine | SGX Listed Companies @ SG investors.io 1. Search and add Sembcorp Marine Rights Shares to your Online Trading Platform / App. It will be rejected. 2. The gift link for this subscriber-only article has expired. Look for Rights Application and select "SEMBCORP MARINE R" and follow through. Sembcorp Marine is fortunate because it has the backing of Sembcorp Industries (Sembcorp Industries owns the majority of Sembcorp Marine’s shares), which has the relatively more stable utilities business to act as a buffer. Loss-making Sembcorp Marine on Monday proposed a S$2.1 billion ($1.5 billion) recapitalisation through a rights issue that will be backed by the rig builder's parent firm, Sembcorp Industries, and state investor Temasek Holdings. Singapore shipbuilder Sembcorp Marine has temporarily reduced the workforce at its yards by over 95% as part of its Covid-19 mitigation measures. This portal is an automated process tool for Sembcorp Marine Ltd and her partners.It enables a secure collaboration between Sembcorp Marine … Last month we had SIA offering rights issue. Through the Rights Issue, we will repay, including by way of set-off, this S$1.5 billion. This article is now fully available for you, Please verify your e-mail to read this subscriber-only article in full. Important dates to note. *Note: Rights Shares in CPF / SRS cannot be accepted via ATM. Loss-making Sembcorp Marine on Monday proposed a S$2.1 billion ($1.5 billion) recapitalisation through a rights issue that will be backed by the rig builder's parent firm, Sembcorp … SG Trading Blog . ie. Sembcorp and SembMarine shareholders voted strongly in favour of the $2.1 billion recapitalisation for SembMarine and demerger proposal for the two groups last month. Sembcorp Marine (SGX:S51) will issue rights at SGD0.20/rights share, representing a 31% discount to the theoretical ex-rights price (TERP) based on a 5-day volume weighted average price of SGD0.74. This month we have Sembcorp Marine. Excess Rights Shares are not guaranteed. Unsuccessful Excess $ amount will be refunded to your bank account. a 76.5% discount to the Last Close Price and a 31% discount to the Theoretical ex-rights Price (TERP) of S$0.29 based on last 5-Day VWAP (of S$0.74/share) more than the amount that you are offered). Promoting Responsible Investing. Full details of the Sembcorp Marine Rights issue are also available at: https://www.sembmarine.com/investor-relations/sembcorp-marine-rights-issue. Basically Sembcorp Marine will do a 5 for 1 rights issue at $0.2 per share. Offered (allotted) Rights Shares are guaranteed. Loss-making Sembcorp Marine on Monday proposed a S$2.1 billion ($1.5 billion) recapitalisation through a rights issue that will be backed by the rig builder's parent firm, Sembcorp … Method 1: Acceptance via ATM (DBS/OCBC/UOB) (Most Popular & Convenient Method) For each share of SCI owned, SCI shareholders will be entitled to receive 4.911 shares of SMM, which has a market value of $0.193 per share (as of 8 September market close) Demerged Sembcorp Industries: S$0.962. This is also known as subscribing or taking up the Rights Shares. Name) Tan Yah Sze Designation Company Secretary Underwritten Yes Shareholders' Approval … There will be a notification that shows the quantity of Rights Shares you are allotted, or. Get unlimited access to all stories at $0.99/month for the first 3 months. Please keep a lookout in your letterbox. Sembcorp Marine shareholders need to note that the record date for the rights issue is on 14 August 2020. ATM method. Since the rights are renounceable (similar to previous SIA rights), current shareholders of Sembcorp Marine may either accept the rights (requires extra cash to invest more on this stock) or they could simply sell the rights in stock market at later stage if action is approved. After you use CPF / SRS Funds to accept the Rights Shares, the Rights Shares will be issued to your CPF / SRS Account on or around. In one of the most startling pieces of news to hit the oil and gas industry, Sembcorp Industries (SGX: U96), or SCI, has announced a recapitalisation exercise for its subsidiary Sembcorp Marine (SGX: S51), or SMM. SEMBCORP MARINE LTD Security SEMBCORP MARINE LTD - SG1H97877952 - S51. Recall that for every 1 shares of Sembcorp Marine that you own, you will be entitled to 5 rights shares. Go under More Services / Investment Services. This portal is an automated process tool for Sembcorp Marine Ltd and her partners.It enables a secure collaboration between Sembcorp Marine … You can calculate your breakeven price if you accept all the Rights Shares (see below). 198402868E. Sembcorp Marine R - Lot size is 100 shares. In one of the most startling pieces of news to hit the oil and gas industry, Sembcorp Industries (SGX: U96), or SCI, has announced a recapitalisation exercise for its subsidiary Sembcorp Marine (SGX: S51), or SMM. SEMBCORP Marine (SembMarine) plans to buy the intellectual property of Norway’s Sevan Marine for US$28 million and bring an end to a long-standing intellectual property dispute between the two parties, according to a Friday morning announcement on the Singapore … You have reached your limit of subscriber-only articles this month. 1. For every 1 existing Sembcorp Marine share, shareholders are entitled to 5 Sembcorp Marine Rights Shares at S$0.20/Rights Shares. Sembcorp Marine R1 - Lot size is 1 share. Im holding 900 units of sembCorp and 2000 units of Semb Marine. No. The rights issue will be on the basis of five Sembcorp Marine rights shares for every one share in Sembcorp Marine held by a shareholder. Furthermore, Sembcorp Marine has said that most of its projects will be delayed into 2021, which is expected to affect its near-term working capital and cash flow. The outstanding loan principal amount is S$1.5 billion. Please find acceptance steps below under Part I: How To Accept Your Rights Shares. 2. SAMPLE CALCULATION Sembcorp Marine rights issue undersubscribed; Temasek to mop up 1b shares. The Proposed Distribution and the rights issue are inter-conditional, and will only proceed if shareholder approvals are received for all resolutions at both companies’ EGMs. It’s worth noting too that Temasek Holdings, one of our local government’s investment arms, is a major shareholder of Sembcorp Industries. You may apply for Excess Rights Shares (ie. Sembcorp Marine shareholders must now decide on rights takeup. SEMBCORP Industries (Sembcorp) and Sembcorp Marine (Sembmarine) have proposed a major plan to rescue the marine giant with a S$2.1 billion cash call and to "demerge" from each other as the pandemic takes a toll on operations. Sembcorp Marine in plan to raise $2.1 billion with support from Temasek, demerge from parent SCI and SembMarine will be seeking their respective shareholders' approval for the rights … Lyndell . Rights Acceptance Period: 19 Aug - 02 Sep 2020, HOW TO CALCULATE YOUR BREAKEVEN PRICE IF YOU ACCEPT, EXCESS RIGHTS Rights Shares in CPF / SRS For every 1 Share, you are offered 5 Rights Shares @ S$0.20 each. Hi there, would like to get some advice. You can also subscribe by paying $0.20 to convert each right to a share in Sembcorp Marine. Key in the total number of Rights Shares you wish to apply (Allotment + Excess shares). This means that if a shareholder owns 100 shares in Sembcorp Marine, the investor will be entitled to 500 Sembcorp Marine rights shares at a total price of S$100 (excluding any fees). Bought marine almost a decade ago at the $5+ range. COVID-19 has forced companies to beef up their balance sheet. Even if you do not wish to fork out money to subscribe, there is some value to be taken back during the rights trading period, so do not miss it! You may also apply for Excess Rights Shares if you wish to (see below). Understanding Sembcorp; Share Information; Results and Reports ; Annual General Meeting; Financial Calendar; SGX Announcements; Useful Links. The Rights Shares are your entitlement and have value. The Rights Shares are renounceable (ie. The issue price will be at $0.20 per rights share . Rights Shares in CDP There will be an Offer Information Statement (OIS) despatched to you on or around 19 Aug 2020.Please keep a lookout in your letterbox. Sembcorp Marine’s EX-rights issue price at S$0.308 Based on the above, I calculated it on excel how much existing Sembcorp Marine shareholder will lose out if they don’t go for the highly dilutive rights issue given that the Theoretical Ex Rights Price is S$0.308. 1. Based on past Right issues, the first few days usually command better prices. Join ST's Telegram channel here and get the latest breaking news delivered to you. Sembcorp Marine Limited SGX: S51 an Asian company based in Singapore.It is listed on the Singapore Exchange (SGX). SEMBCORP MARINE LTD (S51.SI) Corporate Action - Dividends / Rights / Splits of Sembcorp Marine | SGX Listed Companies @ SG investors.io Rights Shares in CPF / SRS At current market price, that 100 shares is worth about $50+, so you’re being asked to cough up $100 for each $50, which is quite a bit to ask from shareholders actually. Please keep the receipt. According to Sembcorp Group, this is approx. Since the rights are renounceable (similar to previous SIA rights), current shareholders of Sembcorp Marine may either accept the rights (requires extra cash to invest more on this stock) or they could simply sell the rights in stock market at later stage if action is approved. Business Times 122d. Sembcorp Marine and Sembcorp Industries (SGX:U96) have jointly announced a proposal for a SGD2.1bn recapitalisation and de-merger. This will strengthen Sembcorp Marine’s balance sheet and result in Temasek becoming a direct shareholder of Sembcorp Marine. Based on the above, I calculated it on excel how much existing Sembcorp Marine shareholder will lose out if they don’t go for the highly dilutive rights issue given that the Theoretical Ex Rights Price is S$0.308. Sembcorp Marine Rights Issue: How To Accept Or Sell Off Your Rights Shares, Estate Planning: Joint Account for Couples or Family Members, Search for "sembcorp" - Online Trading Platform, Log in to your online CDP account. *Note: Lyndell does not have access to your CDP / CPF / SRS so you will We view the proposal positively, as this … Until we resolve the issues, subscribers need not log in to access ST Digital articles. Say, you hold 1,000 shares of Sembcorp Marine, bought before 13 Aug 2020. need to wait for the physcial letters or check the quantity yourself. you can sell them off you don't wish to take up the rights shares). Sell off your Rights Shares Read 3 articles daily and stand to win ST rewards, including the ST News Tablet worth $398. The rights issue will be on the basis of five Sembcorp Marine rights shares for every one share in Sembcorp Marine held by a shareholder. COVID-19 has forced companies to beef up their balance sheet. ARE form attached to the OIS that is despatched to your letter box. SINGAPORE (THE BUSINESS TIMES) - High volumes of Sembcorp Marine (SembMarine) shares changed hands on their first day of ex-rights trading, two … The issue price will be at S$0.20 per rights share . Net Gearing to Plunge Post-rights Issue. So for every 100 shares in Sembcorp Marine, you’ll get offered 500 shares at $0.2. Shareholding structure . If you wish to take up the Rights Shares, you will have to fork out 5,000 x $0.20 = $1,000. SCI closed at S$1.91 on 8 September. Option 2: Subscribe. Sembcorp Industries will take up S$1.27 billion in the rights issue and an extra S$230 million if needed. Would like to ask if Im looking at averaging down my cost drastically, is it cheaper to buy sembcorp now and get the free marine units, or should I subscribe for extra rights? We have been experiencing some problems with subscriber log-ins and apologise for the inconvenience caused. Sembcorp Industries S$ 0.00 0.00 0.00% Vol 0.00; Prices delayed 1 minute | Disclaimer. I do not own any Sembcorp Marine (SCM), but I do own Sembcorp Industry (SCI), so naturally I am interested. SembMarine had said the funding would help it ride out the industry downturn, strengthen its balance sheet and reposition it for long-term viability. Trading Rep . Last year, SCI granted SCM a subordinated loan facility. After this Rights issue, you will have more Sembcorp Marine shares (ie. If Sembcorp Marine’s ex-right price is significantly above S$0.22, say at S$0.30, you can borrow and short-sell the shares at S$0.30, exercise your rights at S$0.20/rights on 19 August, wait for your shares to be delivered to you on 11 September and return the borrowed shares, thus benefitting from the price difference of S$0.08/share. SEMBAWANG MART MEDICAL CENTRE. The next step is to establish on whether you want to take up the rights to lower your price and await for Sembcorp Marine mother share price to appreciate (which may or may not happen, it's a call that you have to make). PART I: HOW TO ACCEPT YOUR RIGHTS SHARES, Please take note that there are different methods for accepting Rights Shares in CDP / CPF / SRS. 5-for-1 Sembcorp Marine Rights Issue. 1. Acceptance has to be done via the bank that holds your CPF / SRS Investment Account, that holds the Sembcorp Marine shares. Your online CDP balance will reflect the Total quantity, which Sembcorp Marine (SCM) is seeking to raise S$2.1 billion by issuing 5 rights shares for every 1 share owned, at a conversion price of S$0.20 per share. Please see trading steps below under Part II: How To Sell Off your Rights Shares. Sembcorp Industries (SCI) is a major shareholder of SCM with a 61% ownership and hence they would get most of the rights shares. ie. By registering, you agree to our T&C and Privacy Policy. But, let's say you have 5,530 Rights Shares to sell, then you will sell 5,500 under Sembcorp Marine R and 30 under Sembcorp Marine R1. Let's say you previously bought Sembcorp Marine shares at $1.20 per share and you decide to subscribe to all the rights, ie. Currently Sembcorp Industries owns 61% of Sembcorp Marine… Sembcorp Marine Limited SGX: S51 an Asian company based in Singapore.It is listed on the Singapore Exchange (SGX). A version of this article appeared in the print edition of The Straits Times on September 09, 2020, with the headline 'Sembcorp Marine rights issue 90.2% subscribed'. Sembcorp Marine shareholders need to note that the record date for the rights issue is on 14 August 2020. Thereafter, please contact Lyndell within the same day to amend it to CPF / SRS. The total $ amount will be deducted from your bank balance. Estate Planning: What Happens To Your Assets In CDP If You Pass On? All done! Will Sembcorp Marine be debt-free from SCI after the demerger? Please follow the same steps above (Rights Shares in CDP) and sell under Payment Type: Cash. For every 1 existing Sembcorp Marine share, shareholders are entitled to 5 Sembcorp Marine Rights Shares at S$0.20/Rights Shares. If there are insufficient Excess Rights Shares to satisfy all valid Announcement Title Propose Renounceable Underwritten Rights Issue Date &Time of Broadcast 08-Jun-2020 16:36:53 Status New Corporate Action Reference SG200608RHDIVHHL Submitted By (Co./ Ind. Lim & Tan Securities, 18 Common Questions About Your Trading Account. In this article, Dr Tee will compare both Sembcorp stocks and share the possible causes and effects of such actions with deeper analysis. For this, you will need to fork out money to accept the Rights Shares. The counter is Sembcorp Marine R (SGX:THFR). *Both orders should be done within the same day so that only 1 time brokerage is charged. 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