Friday 12 November 2010

DBS to sell preference shares to retail investors. Really ah???

Read? DBS to sell preference shares to retail investors

It should be read as "DBS is replacing DBS 6% NCPS with DBS 4.7% NCPS".

High chance that most current holders of DBS 6% NCPS will take up DBS 4.7%. In another word, DBS is refinancing its long-term debt at a lower rate so it is positive for the mother share.

At today closing at $14.04, current DBS dividend yield is about 4%. So does it still make sense to take up DBS 4.7% NCPS?
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2 comments:

  1. AK7112 November 2010 at 23:24:00 GMT+8

    I will take back my money from DBS NCPS 6% next year. 10 years just went by so quickly. I still remember how I queued at the ATM to apply for it.

    I won't bother to apply for DBS NCPS 4.7%. I can get better returns elsewhere. :)

    ReplyDelete
  2. Anonymous13 November 2010 at 07:12:00 GMT+8

    I think DBS ordinary share has more liquidity n room for capital gain. :)
    Odie

    ReplyDelete