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First REIT Excess Rights Results: I got 2750 excess rights!

Folks following this blog would know that I applied for First REIT 5 for 4 rights issue.

In addition to that I Applied for 20000 excess rights, paying SGD10,000 for this.

Today on the 31st Dec 2010 is the trading day for all these rights and a check on my CDP account shows that I got some excess rights!

It’s a welcome surprise because, First REITs is strongly held I feel and not likely to have so much excess rights.

My previous experience with Sing Investment was disappointing.

Anyway, the 5 for 4 rights issue left me with 250 shares of odd First REIT stock.

But a check of my CDP account shows that they have given me a total of 2750 more shares. So 2750/20000 = 13.5% allocation.

Why is Excess Rights a big deal?

For those not familiar with excess rights, it is basically a lottery to see if there are outstanding stocks of shares that existing shareholders would not want to hold and can be secured for other investors.

So for this 2750 share I will pay $0.50 for them. The current price trading is $0.705. Which means that like IPO shares without doing anything, you get a 41% return on these shares.

So effectively I made $563.75 dollars just like that.

How to check how much excess rights you have got

Likely you can’t tell how much excess rights you have by looking at the amount refunded in your bank account.

Go to and login to check. Go to E-Statements > Holdings.

I hope you guys got more than I have.

Great New Year’s Gift!

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Friday 18th of March 2011

Hi Drizzt, thanks for the reply. So i assume the company will post some documents to me to declare whether to opt-in or out? Say if i opt-in, then i can just leave the thing behind and no more actions from me are needed correct?

I am currently holding Cambridge, and they are issuing rights, causing the shares to fell by a large proportions even before the rights started trading.


Wednesday 16th of March 2011

Hi Drizzt, i am new to investing. Would like to know more about rights, how to convert them to shares and through where? Can be sold in the open market? Thanks.


Friday 18th of March 2011

hi Hwang, rights issues happens when listed companies like First REIT wants to raise more money other than the first IPO. it is more catered for existing share holders. you can only subscribe to rights issues if you currently hold First REIT shares. Once the shares goes XR or ex-rights, the share price will fall and the difference between the price now and the fallen price is probably the price of the listed rights.

These listed rights can be bought or sold by other investors for the purpose of participating in the rights issue should you not have any shares in First REIT or as an avenue for existing First REIT investors to sell off should they don't want to put more money into First REITs.

This rights enable you as a right holder to subscribe to First REIT shares at a certain price.

I hope it is clear for you.


Monday 3rd of January 2011

@Drizzt: From the annoucement released, there are 88,002,026 excess shares applied vying for 7,790,838. That's almost 11.3 times over subscribed in a sense! Anyway I guess a way to play counter with rights issue is to take up odd lots for a better chance of getting the excess. My humble opinion to share.


Monday 3rd of January 2011

haha the thing is that this issue comes with odd lot certainty.

La papillion

Saturday 1st of January 2011

Hi Drizzt,

From aims experience, it would seem that the amt of excess rights you get is a function of how much you have upon XR rather than the amt that you applied for, after accounting for odd lots rounding :)


Friday 31st of December 2010

Apologies to all, i checked my bank acct and the refund is in. by now i think you guys can based on that to calculate how much excess rights you were alloted.

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