If you have 1,000 shares, you would be granted 5,000 rights. So what happens if we don’t sell the rights (due to commission exceeding sale) and also don’t subscribe to the rights (don’t want to invest further in a sinking ship)? Sembcorp Marine (SCM) is seeking to raise S$2.1 billion by issuing 5 rights shares for every 1 share owned, at a conversion price of S$0.20 per share. Hi Alvin, After subscribed to the rights, when will it become actual SCM share that I can trade? The rights issue will involve the issuance of five shares for each existing share held, at an issue price of S$0.20 per rights share. I do not own any Sembcorp Marine (SCM), but I do own Sembcorp Industry (SCI), so naturally I am interested. Following the allotment and issue of the 10,462,690,870 Rights Shares, the number of issued Shares (including 416,840 treasury shares) increased from 2,092,955,014 Shares as at 10 September 2020 to 12,555,645,884 Shares. Thanks. You can pay for the conversion at the ATMs (shares held in CDP) or transfer to your broker (shares held in custodian). This will then result in demerger between the two firms via a distribution in specie of SCI’s stake in the recapitalised Sembmarine to SCI shareholders. You can sell the rights as you normally sell a stock via your broker. Last year, SCI granted SCM a subordinated loan facility. Do refer to the diagram above. S$2.1 billion renounceable Rights Issue by Sembcorp Marine, 2. THE Sembcorp Marine (SMM) rights issue of shares to recapitalise the company was undersubscribed, with valid acceptances and excess applications received for 9.4 billion rights shares, or 90.2 per cent of the nearly 10.5 billion rights shares available. Under SembMarine's $2.1 billion renounceable rights issue, five rights shares will be issued for every one existing SembMarine share at 20 cents per rights share. Based on recent average price of $0.74 for Sembcorp Marine, the theoretical ex-rights price (TERP) is TERP = [ ($0.20 x 5) + ($0.74 x 1)] / 6 = $0.29/share Regardless which you choose, you MUST ACT. Sembcorp Industries and Sembcorp Marine are today proposing the recapitalisation of Sembcorp Marine through a S$2.1 billion renounceable rights issue (the “Rights Issue”), followed by a proposed demerger of the two companies via a distribution in specie (the “Proposed Distribution”) of Sembcorp Industries’ stake in the recapitalised Sembcorp Marine to Sembcorp Industries shareholders. Please don’t repeat the SIA renounceable rights and MCBs episode previously.. What should i do? Through the Rights Issue, we will repay, including by way of set-off, this S$1.5 billion. Built a business to empower DIY investors to make better investments. Distribution of Sembcorp Marine shares to Sembcorp Industries shareholders, Footnotes: 1 TERP – Theoretical ex rights price 2 Based on the 5-day period up to and including the last close as of 3 June 2020 3 VWAP – Volume weighted average price 4  73.0% discount to the 5-day VWAP, based on the 5-day period up to and including the last close as of 3 June 2020. The demerger with Sembcorp Industries will enable the Company to pursue a focused strategy and build further its core engineering and execution capabilities. This will then be followed by a proposed demerger of the two companies via a distribution in specie of Sembcorp Industries’ stake in the recapitalised Sembcorp Marine to Sembcorp Industries shareholders. Please refer to our 15 September 2020 announcements on the changes in interests relating to Temasek and its subsidiaries as well as SCI. Loss-making Sembcorp Marine on Monday proposed a S$2.1 billion ($1.5 billion) recapitalisation through a rights issue that will be backed by the rig builder's parent firm, Sembcorp Industries, and state investor Temasek Holdings. But of course the prices are subjected to changes due to market forces and perceptions. As part of the issue, S$1.5 billion is made up of a loan from SCI to SMM that will be converted to equity in the books of SMM. Sembcorp Marine (the “Company“) announced on 7 September 2020 that, as at the close of the Rights Issue on 2 September 2020, valid acceptances and excess applications were received for 9,434,192,612 Rights Shares, representing approximately 90.2% of the 10,462,690,870 Rights Shares available under the Rights Issue. Be granted 5,000 rights but only wish to convert to shares unsubscribed rights shares for every share you.! 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