Genting 5.125% Balloting Results

Genting 5.125% perpetual subordinated capital securities balloting results are out. 


The balloting ratio are as follow:

 

Some summary on the results above:

1) Anyone who applied will get something

2)  If you applied for 10 lots or less, you would have been allocated 100% of hat you applied

3) The offer was about 46.8% over subscribed. This is a little lower than what I expected.

Other quick facts (extracted from SGX annoucement):

Source: SGX annoucement:
 http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_BA402827CA98B115482579E30039A8FA/$file/GENS-Announcement.pdf?openelement

1) As at the close of the Public Offer at 12.00 p.m. on 16 April 2012, valid applications in respect of S$731,339,000 in aggregate principal amount of the Securities at the issue price of 100 per cent. under the Public Offer were received.

As at the close of the Reserve Offer at 5.00 p.m. on 11 April 2012, valid applications in respect of S$3,014,000 in aggregate principal amount of the Securities at the issue price of 100 per cent. under the Reserve Offer were received. The Company did not offer any of the Securities to institutional and other investors under the Placement.

2) A final issue size of $500M was allocated as follows:

(a) S$496,986,000 in aggregate principal amount of the Securities at the issue price of 100 per cent. to the Public Offer; and

(b) S$3,014,000 in aggregate principal amount of the Securities at the issue price of 100 per cent. to the Reserve Offer.

3) Securities will be issued on 18th Apr 2012 and commence trading on 19th Apr 2012


My thoughts:

The offer was about 46.8% over subscribed. This is a little lower than what I expected. The first trading day should see some active trading in this counter. There will be some investors who got more than what they wanted and may sell some or all of their holdings on the first day. There will also be investors who are waiting to buy this counter for a better yield should it drop below par value. On the whole, I think it should stay close to the par value.

Again, we see a couple of multi millionaires applying this counter at large quantities. There are a total of 24 people who applied for more than a million dollars worthed of this offer. I wonder if they will hold it for medium to long term or will they sell on the first trading day.

The next payout will be in half a years time on 18 Oct. This will stay within my portfolio under my fixed income sector for the next few years at least. Until then, I will be keeping a lookout for opportunities to increase my passive income.

Related Posts:
Genting 5.125% bond
Genting 5.125% bond [part 2]