Ascot Holdings Rights Issue & Warrants

[SrirangaVeteran]

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http://www.cse.lk/cmt/upload_cse_announcements/6651407904953_.pdf

[slstockVeteran]

Massacre.

[yellow knifeTop contributor]

come to yala and see the pictures of animals hung on your wall, in the land of safety hotels...you wont get frightened by a single live reptile...


(future ad of any yala hotel)

[slstockVeteran]

Reminds me of 2010 when right issues announcement made share price go up.

Amazing . 1 right placed at Rs 12.5 ( 20% net asset!!!!) and shares trades at Rs 90. And price goes up not down. Manipulation to the best.

[sereneTop contributor]

 It says trading halt.
But trading take place.  

[SrirangaVeteran]

 It says trading halt.
But trading take place.  

Trading was halted pending the announcement and lifted from 11am.

[sereneTop contributor]

 It says trading halt.
But trading take place.  

Trading was halted pending the announcement and lifted from 11am.

Ok
Thanks Reds.

[chinwiTop contributor]

No No. This is a rare example of early days rights issues.
Excellent job by Mr. Upali Mendis and other.

Normally and theoretically a right is an opportunity to buy a share at a bargain price offered to the existing shareholders.  
While others buy at trading price existing shareholders get this opportunity to buy low.

When a right is announced, trading price should go up.

Unfortunately bad people entered to the CSE ruined this feature during last few years.

Now we can see a good right issue , issued 1 for 2 at a bargain price and the warrants too.
Not like bogus Platinum robbers, they have realistic reason to issue warrants to get cash at a future  date. :Working Capital.

Proportion of warrants is also very strong. Do not dilute share volume.  1 for 8 existing shares.

Price of the share should go up because this will give good opportunity to shareholders to trade rights and warrants to earn more.

[slstockVeteran]

Good points. I agree with most of what you said.


I still think the right issue price is too less . Due to the nature of ASCO holders and its illiquity, this went up. Yesterday someone was existing at Rs 90.

If this happened for any other liquid , not tightly controlled share... ??

No No. This is a rare example of early days rights issues.
Excellent job by Mr. Upali Mendis and other.

Normally and theoretically a right is an opportunity to buy a share at a bargain price offered to the existing shareholders.  
While others buy at trading price existing shareholders get this opportunity to buy low.

When a right is announced, trading price should go up.

Unfortunately bad people entered to the CSE ruined this feature during last few years.

Now we can see a good right issue , issued 1 for 2 at a bargain price and the warrants too.
Not link bogus Platinum robbers, they have realistic reason to issue warrants to get cash at a future  date. :Working Capital.

Proportion of warrants is also very strong. Do not dilute share volume.  1 for 8 existing shares.

Price of the share should go because this will give good opportunity to shareholders to trade rights and warrants to earn more.

[chinwiTop contributor]

Yes. Price is too law. Better if they made it bit higher and 1:3.

Can anybody recall Budu mahesh    collecting millions of this share @ Rs.5,6,7 .... years ago ?

[wappula]

No No. This is a rare example of early days rights issues.
Excellent job by Mr. Upali Mendis and other.

Normally and theoretically a right is an opportunity to buy a share at a bargain price offered to the existing shareholders.  
While others buy at trading price existing shareholders get this opportunity to buy low.

When a right is announced, trading price should go up.

Unfortunately bad people entered to the CSE ruined this feature during last few years.

Now we can see a good right issue , issued 1 for 2 at a bargain price and the
warrants too.
Not link bogus Platinum robbers, they have realistic reason to issue warrants to get cash at a future  date. :Working Capital.
Proportion of warrants is also very strong. Do not dilute share volume.  1 for 8 existing shares.

Price of the share should go up because this will give good opportunity to shareholders to trade rights and warrants to earn more.

thank you chinwi, excellent, awesome point.

[seekTop contributor]

any ASCO share holders here ?

share is trading at 105 when the right issue price at 12.50,

Warrants to be converted at 25 from one year..

It is interesting to see at what price these Ws start to trade.

[SrirangaVeteran]

Between 35 and 50?

[seekTop contributor]

Just assume some one bought 1000 shares from the current market price. (say 110)

Personally, I expect price to be go further up within next 2-3 days (at least around 150).

He will be entitled to have 500 shares at 12.50 and 125 warrants free.

Total cost (110000 + 6250) / 1500 = 77.50
At what price ASCO will be traded after the right issue?. Theoretically it will be 2/3 of the pre-trading price. Is 150 reasonable before the XR date?

Will it trade above 90 after the right issue? Then warrants should start trading at least above 60 IMO.

Anyway, ASCO.W will be the most attractive warrants in the market and most probably will always trade above ASCO.N value.

Has anyone got different figures…

[smallvilleTop contributor]

Isnt this a good rights issue.. Unlike warrants factories we've seen some years ago claiming money from investors and taking them on rides offering 10-15 rights for just 1 share, this infact in the way around.

Thr rights price is too low.. So can som1 predict Ex rights ASCO price ?

[yellow knifeTop contributor]

As per my calculations

as per the quarter report 31.03.2014

25.77% of shares = 2,058,092
if so total number of shares 7,968,367

No of rights should be 3,993.193
when a right is issued at 12.5
total Rs value of full subscription will be Rs 49,914,920

No of warrants as per announcement 998,188
Full subscription of warrants will give company
Rs 24,954,700

So the total project cost of the Yala hotel will be Rs 74,869,620

So the result will be 75 million worth hotel...

This rights by the way they are priced will be attractive to market traders than for the company ..

I like to know what will be the nature of a hotel built with 75 Million... Is the company interested in trading rights and warrants than 75 million worth hotel...

Anyway this will give a good opportunity for traders..

I personally avoid companies whose announcement list consist only dealings by directors and rights with no dividends at all

[seekTop contributor]

Can you remember? This was called as King's stock one time. Check top 20 list 2-3 Q ago. You will see two kings.

[chinwiTop contributor]

@ Yellow knife


Yes. Very good point.


This could be a well designed Platinum mine (for the main holders) presented in most genuine form.

We have to wait and see.

I do not know how to build a new hotel with 50-70 million. Eco friendly cabana huts ?

Thank you.

[slstockVeteran]

Still wondering why dilute NAV by 80% by this ridiclous rights price ( in my opinion) that would only bring Rs 50 million!!! Some of the share holder in that list might be carrying Rs 50 Mil as pocket cash.

[chinwiTop contributor]

Can you remember? This was called as King's stock one time. Check top 20 list 2-3 Q ago. You will see two kings.

I was there at the trading floor when that fellow- backed by Iriyagolla money- collected this @ Rs.4-7 range.

රෙදි වියන කොම්පැනිය වැහිල Book value මයිනස් වෙලා EPS -ve තියෙද්දි මේක 6 ට 7 ට ලක්‍ෂ ගනන් එකතු කරන්න පිස්සුද දන්නෙ නෑ කියල මිනිස්සු කිව්ව​.
ඊට පස්සෙ 100% මිල වැඩි උනාම 16-20 ට විකුණන්නෙ නැතුව තවත් එකතු කරනව​.
සති කිහිපයයි ගියේ මෙන්න එකතු කරපු අය ගෙන් වෙනත් අය​ 65/- ට 80/- ට ගන්නව​.

අප්ඩේට් නොකරපු පොත් වල එහෙම වටිනාකම් තිබුනට සමහර ඒවගෙ ඇත්ත වටිනාකම හාත් පසින්ම වෙනස් වෙන්න පුලුවන් බව දැන ගත්තෙ Ascot නිසා තමයි.

මමත් 5/- ට තියෙද්දි ගන්නෙ නැතුව, මෙලෝ දෙයක් දන්නෙ නැතුව 8/- ට ටිකක් අරගෙන දවස් දෙක තුනක් බඩේ බිත්තර තම්බ තම්බ ඉඳල 18/- ට දීල සැනසුම් සුසුම් හෙලුව​. ඒ දවස්වල ට්‍රේඩිං කලා නේ.

[sereneTop contributor]

Can you remember? This was called as King's stock one time. Check top 20 list 2-3 Q ago. You will see two kings.

I was there at the trading floor when that fellow- backed by Iriyagolla money- collected this @ Rs.4-7 range.

රෙදි වියන කොම්පැනිය වැහිල Book value මයිනස් වෙලා EPS -ve තියෙද්දි මේක 6 ට 7 ට ලක්‍ෂ ගනන් එකතු කරන්න පිස්සුද දන්නෙ නෑ කියල මිනිස්සු කිව්ව​.
ඊට පස්සෙ 100% මිල වැඩි උනාම  16-20 ට විකුණන්නෙ නැතුව තවත් එකතු කරනව​.
සති කිහිපයයි ගියේ මෙන්න එකතු කරපු අය ගෙන් වෙනත් අය​ 65/- ට 80/- ට  ගන්නව​.

අප්ඩේට් නොකරපු පොත් වල එහෙම  වටිනාකම් තිබුනට සමහර ඒවගෙ ඇත්ත වටිනාකම හාත් පසින්ම වෙනස් වෙන්න පුලුවන් බව දැන ගත්තෙ Ascot නිසා තමයි.

මමත් 5/- ට තියෙද්දි ගන්නෙ නැතුව, මෙලෝ දෙයක් දන්නෙ නැතුව 8/- ට ටිකක් අරගෙන දවස් දෙක තුනක් බඩේ  බිත්තර තම්බ තම්බ ඉඳල 18/- ට  දීල සැනසුම් සුසුම් හෙලුව​. ඒ දවස්වල ට්‍රේඩිං කලා නේ.

Koi kaleda Chin oowa une??

[slstockVeteran]

Konde bandapu Chinnu hitiya kale wahe haha ( no offence to Chinwi) .

Think around early 2000s this was trading around that price.

Can you remember? This was called as King's stock one time. Check top 20 list 2-3 Q ago. You will see two kings.

I was there at the trading floor when that fellow- backed by Iriyagolla money- collected this @ Rs.4-7 range.

රෙදි වියන කොම්පැනිය වැහිල Book value මයිනස් වෙලා EPS -ve තියෙද්දි මේක 6 ට 7 ට ලක්‍ෂ ගනන් එකතු කරන්න පිස්සුද දන්නෙ නෑ කියල මිනිස්සු කිව්ව​.
ඊට පස්සෙ 100% මිල වැඩි උනාම  16-20 ට විකුණන්නෙ නැතුව තවත් එකතු කරනව​.
සති කිහිපයයි ගියේ මෙන්න එකතු කරපු අය ගෙන් වෙනත් අය​ 65/- ට 80/- ට  ගන්නව​.

අප්ඩේට් නොකරපු පොත් වල එහෙම  වටිනාකම් තිබුනට සමහර ඒවගෙ ඇත්ත වටිනාකම හාත් පසින්ම වෙනස් වෙන්න පුලුවන් බව දැන ගත්තෙ Ascot නිසා තමයි.

මමත් 5/- ට තියෙද්දි ගන්නෙ නැතුව, මෙලෝ දෙයක් දන්නෙ නැතුව 8/- ට ටිකක් අරගෙන දවස් දෙක තුනක් බඩේ  බිත්තර තම්බ තම්බ ඉඳල 18/- ට  දීල සැනසුම් සුසුම් හෙලුව​. ඒ දවස්වල ට්‍රේඩිං කලා නේ.

Koi kaleda Chin oowa une??

[seekTop contributor]

Actually I was referring to two sons of HE. Their names appeared in one Q report but disappeared in the following report. I agree with YK and SLS. This is an innovative dividend.

[The AlchemistTop contributor]

Still wondering why dilute NAV by 80% by this ridiclous  rights price ( in my opinion) that would only bring Rs 50 million!!!  Some of the share holder in that list  might be carrying Rs 50 Mil as pocket cash.

I thought they covered this loophole in the new Company's Act i.e. issuing Rights at discounts to NAV.
Offering Rights at discounted value to NAV dilutes Minority shareholders who do not want to take those Rights for whatever reason. Now, they are virtually forced to take it up due to its attractively discounted price, or else their NAV / share value gets diluted.

Generally, to compensate for this, companies issue Bonus shares after Rights, so that shareholders not taking up Rights do not lose out much.    

This is very strange by ASCOT. No real purpose served to raise Rs 50 Million for hotel.
So when companies do strange things, we must be on the alert.

Important to figure out intrinsic value of share and buy/sell/trade accordingly instead of getting carried away by the Rights Price, and overpaying for the Nominal Share before the Rights.

[seekTop contributor]

@Chinwi, you are very good in Ws. Why dont you come up with a calculations. I know my one is very premitive.