TOMYPAK-WA's first listing date on 5 July 2016. Its price went limit up because of its reference price is 0.005. Even before Bursa's 9am clock tick off, we saw an whooping volume queuing to buy at 0.305. When it is 9am, the TOMYPAK-WA gapped up and limit up at 0.305. (Refer to the snapshot from my RHB TradeSmart App on the right). Congratulations to those who subscribed the rights issue and in return, you had been awarded with the warrants.
But the main thing is not about the stock price. The main thing is the calculation of the TOMYPAK mother share price after the EX date, TOMYPAK-OR price and also TOMYPAK-WA. I had been figuring it out for a long time and luckily i met a friend who helped me a lot. Special credit to my friend, Mr小李飞刀 for his guidance and teaching.
If you like my way of analysis and you haven't join me in my facebook, appreciate if you could like my FB page, https://www.facebook.com/gainvestor10sai/?fref=ts
Thank you^^
Let's start. Step by step: [1][2][3]
Step 1: Understand what is the rationale of the proposal (Rights Issue)[1]
Step 2: Gather the information of these items:
a) The Entitlement of the OR and WA[1]
b) The Par Value of the Mother Share[2]
c) Issue Price of OR[2]
d) The EX Date of the Exercise[2]
e) The Important Relevant Dates for Renounceable Rights[3]
f) The Conversion/Exercise Price of WA[1]
Step 3: You can calculate the OR listing price and WA listing price with some assumptions and basis.
Above is the step by step on the information required. Once we gathered all the information, it will be easier for us to calculate.
Step 1: The Rationale of the Proposal
The proposal is meant for business expansion. TOMYPAK is expected to raise minimum RM27.438 million to maximum RM54.734 million. Around 61% of the rights issue will be used for construction of a new factory building, 29% will be used to purchase machineries, equipment and other anciliary facilities, 9% will be used for working capital while 1% will be used for the rights issues expenses[4].
Step 2: Data Gathering:
a) The Entitlement of the OR and WA
Basis of ONE (1) RIGHTS SHARES for Every Two (2) Existing TOMYPAK Shares, together with FREE DETACHABLE WARRANTS on the basis of ONE (1) WARRANT for every ONE (1) RIGHTS SHARE subscribed.
b) The Par Value of the Mother Share
Par Value: 0.50
c) Issue Price of OR
Issue Price: 1.00
d) The EX Date of the Exercise
EX Date: 1 June 2016
e) The Important Relevant Dates for Renounceable Rights
f) The Conversion/Exercise Price of WA[1]
Let's start. Step by step: [1][2][3]
Step 1: Understand what is the rationale of the proposal (Rights Issue)[1]
Step 2: Gather the information of these items:
a) The Entitlement of the OR and WA[1]
b) The Par Value of the Mother Share[2]
c) Issue Price of OR[2]
d) The EX Date of the Exercise[2]
e) The Important Relevant Dates for Renounceable Rights[3]
f) The Conversion/Exercise Price of WA[1]
Step 3: You can calculate the OR listing price and WA listing price with some assumptions and basis.
Above is the step by step on the information required. Once we gathered all the information, it will be easier for us to calculate.
Calculations of the Adjusted Mother Share, OR Listing Price and WA Listing Price
 |
| Utilisation of Proceeds[1] |
 |
| Entitlement Information[2][3] |
Step 2: Data Gathering:
a) The Entitlement of the OR and WA
Basis of ONE (1) RIGHTS SHARES for Every Two (2) Existing TOMYPAK Shares, together with FREE DETACHABLE WARRANTS on the basis of ONE (1) WARRANT for every ONE (1) RIGHTS SHARE subscribed.
b) The Par Value of the Mother Share
Par Value: 0.50
c) Issue Price of OR
Issue Price: 1.00
d) The EX Date of the Exercise
EX Date: 1 June 2016
e) The Important Relevant Dates for Renounceable Rights
 |
| Important Relevant Dates[3] |
 |
| Important Dates Summarized in the Form of Calendar[5] |
f) The Conversion/Exercise Price of WA[1]
 |
| Page 8 from Source [1] |
Exercise Price of WA: 2.29
Now all the information had been gathered, then,its time for the real action.
Step 3: The calculations for OR and WA listing prices:
i) To calculate the adjusted Mother Share:
Mother Share closing on 31 May 2016 is 2.49.
Formula:
((Closing of mother share x Entitled Number) + (Issue Price of OR x Entitled Number) + (Exercise Price of WA x Entitled Number)) / (Entitled Number of Mother Shares + Entitled Number of OR + Entitled Number of WA)
Since the calculated adjusted mother share is less than the Exercise Price, thus, we can omit the calculation for WA.
((2.49 x 2) + (1 x 1) +(2.29 x 1)) / (2 + 1 + 1) = 1.993 = 1.990
Mother Share Opening on EX Date 1 June 2016: 1.990
ii) To calculate the OR listing price:
In order to calculate the OR listing price, we need to know the closing price of Mother Share also.
Mother Share closing on 3 June 2016 is 1.79
Formula:
(Closing Price of Mother Share - Issue Price of OR) + (Closing Price of Mother Share - Exercise Price of WA)
Since the Exercise Price of WA is higher than the Closing Price of the Mother Share, we can omit the Exercise Price in the formula.
(1.79 - 1.00) +(1.79 - 2.29) = 0.79
TOMYPAK-OR Listing Price on 6 June 2016 is 0.79
iii) To calculate the WA listing price:
In order to calculate the WA listing price, we need to know the closing price of Mother Share as well.
Mother Share closing on 4 July 2016 is 1.86
Now all the information had been gathered, then,its time for the real action.
Step 3: The calculations for OR and WA listing prices:
i) To calculate the adjusted Mother Share:
Mother Share closing on 31 May 2016 is 2.49.
Formula:
((Closing of mother share x Entitled Number) + (Issue Price of OR x Entitled Number) + (Exercise Price of WA x Entitled Number)) / (Entitled Number of Mother Shares + Entitled Number of OR + Entitled Number of WA)
Since the calculated adjusted mother share is less than the Exercise Price, thus, we can omit the calculation for WA.
((2.49 x 2) + (1 x 1) +
 |
| Snapshot from RHB TradeSmart Platform. Price of TOMYPAK adjusted to 1.99 on 1 June 2016. |
ii) To calculate the OR listing price:
In order to calculate the OR listing price, we need to know the closing price of Mother Share also.
Mother Share closing on 3 June 2016 is 1.79
Formula:
(Closing Price of Mother Share - Issue Price of OR) + (Closing Price of Mother Share - Exercise Price of WA)
Since the Exercise Price of WA is higher than the Closing Price of the Mother Share, we can omit the Exercise Price in the formula.
(1.79 - 1.00) +
 |
| Price of TOMYPAK-OR on its first listing date, 6 June 2016. |
iii) To calculate the WA listing price:
In order to calculate the WA listing price, we need to know the closing price of Mother Share as well.
Mother Share closing on 4 July 2016 is 1.86
Formula:
a) If the closing of Mother Share is above the Exercise Price, WA = Closing Price - Exercise Price
b) If the closing of Mother Share is below the Exercise Price, by default WA will be = 0.005
So for TOMYPAK, by default, the WA listing price is 0.005 because 1.86 < 2.29.
TOMYPAK-WA Listing Price on 5 July 2016 is 0.005
I had done similar calculations on PRLEXUS and also TIENWAH. As of now, the calculations are correct. If you have some other examples and my calculations are not correct, do let me know. I wanna make sure my calculations are correct.
TOMYPAK-OR increasd 36.70% from 6 June to 10 June. Its OR had been oversubscribed by 29.39%.
Case Scenario: I will continue with the case scenario in my previous post[5]. (without considering the charges)
Assuming that we bought 4,000 shares of TOMYPAK at 2.40 = RM9,600.
And we subscribed 2,000 shares of TOMYPAK-OR = RM2,000
Total Spent for the exercise = RM11,600.
When the WA is being listed, we assume we sold the mother shares and also all the warrants.
6,000 shares of TOMYPAK at 1.82 = RM10,920
2,000 shares ofTOMYPAK-OR TOMYPAK WA at 0.305 = RM610 (Thanks to Philip Teh for pointing out the mistake on 19 July 2017)
RM10,920 + RM610 - RM11,600 = RM70 loss.
So throughout the whole Rights Issue Exercise, the gross loss is RM70, but if we take into consideration the subcription charges and the selling charges, we must facing more losses around RM100. But for me, the most important thing is, we had gone through the process of Rights Issue and we had understand it.
And i believe in the future, there will be plenty of chances and we can grab the opportunity to earn through the Rights Issue Exercise. And at that time, i am very firm of what i need to do, my area of considerations, and how i can ride the wind of the Rights Issue... I am ready for that!
a) If the closing of Mother Share is above the Exercise Price, WA = Closing Price - Exercise Price
b) If the closing of Mother Share is below the Exercise Price, by default WA will be = 0.005
So for TOMYPAK, by default, the WA listing price is 0.005 because 1.86 < 2.29.
 |
| Price of TOMYPAK-WA on its first listing date, 5 July 2016. |
I had done similar calculations on PRLEXUS and also TIENWAH. As of now, the calculations are correct. If you have some other examples and my calculations are not correct, do let me know. I wanna make sure my calculations are correct.
Technical Charts for TOMYPAK-OR and TOMYPAK
TOMYPAK-OR increasd 36.70% from 6 June to 10 June. Its OR had been oversubscribed by 29.39%. |
| TOMYPAK-OR Opening Price till Closing Price |
 |
| Oversubscription of 29.39% for its WA. |
 |
| TOMYPAK Daily Chart |
Assuming that we bought 4,000 shares of TOMYPAK at 2.40 = RM9,600.
And we subscribed 2,000 shares of TOMYPAK-OR = RM2,000
Total Spent for the exercise = RM11,600.
When the WA is being listed, we assume we sold the mother shares and also all the warrants.
6,000 shares of TOMYPAK at 1.82 = RM10,920
2,000 shares of
RM10,920 + RM610 - RM11,600 = RM70 loss.
So throughout the whole Rights Issue Exercise, the gross loss is RM70, but if we take into consideration the subcription charges and the selling charges, we must facing more losses around RM100. But for me, the most important thing is, we had gone through the process of Rights Issue and we had understand it.
And i believe in the future, there will be plenty of chances and we can grab the opportunity to earn through the Rights Issue Exercise. And at that time, i am very firm of what i need to do, my area of considerations, and how i can ride the wind of the Rights Issue... I am ready for that!
Let's Ride the Wind and Gainvest
Gainvestor 10sai
7 July 2016
12.16am
12.16am
Sources:
[1]: http://www.bursamalaysia.com/market/listed-companies/company-announcements/4986409
[2]: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5098469
[3]: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5098501
[4]: TOMYPAK - TOMY Packs His Right Path: http://gainvestor10sai.blogspot.my/2016/03/tomypak-tomy-packs-his-right-path.html
[5]: TOMYPAK - Rights Issue Underway: http://gainvestor10sai.blogspot.my/2016/05/tomypak-rights-issue-underway.html
[6]: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5133313
[2]: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5098469
[3]: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5098501
[4]: TOMYPAK - TOMY Packs His Right Path: http://gainvestor10sai.blogspot.my/2016/03/tomypak-tomy-packs-his-right-path.html
[5]: TOMYPAK - Rights Issue Underway: http://gainvestor10sai.blogspot.my/2016/05/tomypak-rights-issue-underway.html
[6]: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5133313
Hi Admin, i'm a newbie here. First of all, congratz for your great piece of work. Would you like to share your calculations for PRLEXUS & TIENWAH in your blog as references for readers as well. Thanks.
ReplyDeleteSure, BursaNinja91. But i will take some time, because i am now occupied to prepare the material for my sharing session. I already had a template for the calculation. You can join my sharing session if you want.
DeleteYeah sure, would take it into consideration. If you don't mind just drop me all pertinent details of your sharing session, either here or email bursaninja91@gmail.com. Thanks dude!
DeleteMy friend, i had sent to your email.
DeletePlease have a check.
Thank you
This comment has been removed by the author.
ReplyDeleteThank you for sharing such great work, keep it up.
ReplyDelete