IREITRightsIssue
Apparently I’m not the only one short on cash last month, as three of my counters were issuing rights. First up, I oversubscribed IREIT’s rights issue , and I was alloted 55% of the amount I wanted to subscribe for.  Contrasting this to 2009, where I subscribed fully to Frasers Commercial Trust’s rights offer. However, back then, I subscribed fully to the shares with 0 excess rights (it was a 3 rights for 1 share issue), as compared to now, where I oversubscribed for the units. Moving on…

The next rights issue was for OUE C-REIT, which I took a small position on:

OUERightsIssue

Interestingly, I was given less than half of what I subscribed (My total number of units before the rights exercise is 10% after the rights was allocated), and my average price ended up being close to the TER (theoretical ex-rights) price, with the remaining amount refunded to me. Two friends of mine also own OUE C-REIT, and they both reported similar findings of being alloted half the amount they subscribed.

In conclusion, this goes to show that over-subscription is not guaranteed to net you a profit by simply throwing money at the screen, and only to average down on your initial investment amount. One could say that a company could be rather calculative on the amount of oversubscribed rights you can get…

The last rights issue I shall leave it as a mystery for  now, so that I am “forced” to write a post here.