Issued at $100 apiece, the stock closes at $103.02 on first trading day
By JAMIE LEE
HYFLUX'S preference shares, issued at $100 apiece, surged as much as $3.10 or 3.1 per cent to $103.10 on its trading debut yesterday. The stock, traded in board lots of 10 shares each, closed the day at $103.02. It attracted attention for its annual 6 per cent dividend rate. Hyflux has the option to redeem the shares on or after April 25, 2018. If not redeemed then, the dividend rate will step up to 8 per cent.
With the minimum purchase under the public offer of 100 shares, retail investors who missed out on the shares in the ballot would have had to fork out some $300 more yesterday for the same number of shares.
They would also have to accept a smaller yield. The dividend yield of the shares at their closing price yesterday stood at 5.82 per cent.
Hyflux sold $400 million worth of preference shares, with $200 million of the shares set aside for retail investors, $190 million placed to institutional players, and the remaining $10 million for its directors, management and employees, and its subsidiaries under the reserve offer.
The offer of these Class A shares - the first batch of preference shares offered by the company - was double its original subscription size of $200 million.
The public offer attracted a subscription rate of five times.
According to the balloting results, about 10,000 applicants who applied for 100 shares each - or put up $10,000 upfront - received 30 shares each.
Five individuals who put up at least $2 million upfront for at least 20,000 shares received 3,170 shares each, costing $317,000. (CW8888: Bao Jiak!)
Hyflux received about $1.4 billion in applications under the placement offer. Under the placement, more than 70 per cent of the preference shares went to private banks.
The rest of the shares were sold to asset managers and banks.
The non-convertible shares are perpetual in nature, which means that they have no expiry date but can be redeemed by the company.
Last updated : 15 Sep 2018
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