Jerryoic
2023-03-02
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@HLPADo I hold or buy more Keppel Corporation (BN4)shares on ex- entitlement (XE) today 23 Feb 2923? Keppel Corporation, BN4, share holders today will get 19.1 shares of Sembcorp Marine, S51, shares for every one BN4 share held. The shares will be credited to your trading account on 1st March, 2023. What should you do now? Lets take an example: You own 10,000 BN4 shares before 23Feb2023. The share closed at 7.34 yesterday. If you had sold at this price yesterday. you would get 73,400. Today, if you sell your BN4 say at 5.45 on XE, you will get 54,500 PLUS 191 00 shares and if you sell at 0.125 on 1st March, 2023, would realise 23,875.. In total you will get 54,500+23,875 = 78,375, giving about a 5,000 extra if you had not sold yesterday to earn the entitlement. Wait.. so do you want to relinquish all that Bn4 and S51 shares on 1st March, 2023? My take is that you should keep those 10,000 BN4 shares as Keppel Corp is a blue chip, well managed company and expected to grow earnings in the years ahead. Further, I expect BN4 shares would rise after 1st March as some may sell off their S51 entitlements to buy up BN4. Holding on to their S51 entitlements is a wise move as S51 share price has a price target of 0.18. The newly merged company with Keppel Offshore Marine in ts bag, becomes a world player and should be in a great position to take on the world stage and thereby able to secure huge contracts in time to come. All in all, hold on to your BN4 shares and enjoy the rise on your S51 entitlement shares. You may be richer soon!
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