As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Click to email CW8888 or Email ID :

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down

Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Thursday, 4 November 2010

DBS to sell preference shares to retail investors


DBS will sell preference shares to retail investors soon, said Chng Sok Hui, DBS Bank chief financial officer.

'We plan to launch a retail tranche before year-end,' said Ms Chng on Thursday to reporters after the bank posted third quarter net profit of $722 million, up 28 per cent.

Last month the bank said it is considering selling preference shares to retail investors following the successful sale of $1.7 billion of preference shares to private banking clients.

The preference shares with a fixed dividend rate of 4.7 per cent was snapped up by private banking clients.

Ms Chng declined to specify the size of the retail tranche or the dividend rate.

The October preference shares were sold at a minimum of $250,000.

Retail tranches also typically command a lower dividend than those for private bank clients, but this is likely to be much welcomed by retail investors who receive almost zero interest for their savings accounts. DBS and POSB savings account pay 0.10 per cent for amounts up to $100,000.


  1. So looking forward to seeing more of these preference shares with higher yields being made being offered to retail investors.

  2. Bank's preference shares are usually issued as non-cumulative in dividend payment and a perpetual date for redemption.
    Although, you can trade in the market after issued, liquidity is usually very low.
    So that means one's capital is usually locked-up for a very long, long time; and what is worse is without a fixed date for share redemption, one can consider one has kissed one's capital "goodbye".
    I think buying the Bank's shares is a better bargain.
    Of course Instituions love preference shares because they are paying you less than 4.7 %. And they have too much of your capital to invest.

  3. I think if one goes into buying NCPS, one should be prepared to do so with the intention of not planning to withdraw the capital. And the sole objective is therefore to achieve perpetual returns from the dividend/coupons only. It is unlikely (though not impossible) that the NCPS would drop below par value. If the bank/issuer were to call back the NCPS, one gets back the par value anyway.

  4. That's what most "Institutions" do.
    Too much fund from the "public".
    As for me, I believe my fund which is very limited should be "alive".
    But if dividend is cumulative I may consider.


Related Posts with Thumbnails