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Friday, April 30, 2010

Financial News - 30 APR 2010: Keppel Land Dividend Reinvestment Scheme - Issue price of new shares

Keppel Land Dividend Reinvestment Scheme - Issue price of new shares. See report.

Key Points
  • Issue price is $3.63 for each new share.
  • Issue price represents discount of 4% to the average of the daily volume weighted average price from 27 April 2010 to 29 April 2010.
  • Shareholders not participating in the scheme will receive the final dividend in cash.
Author's Note
The final dividend is 8 cents per share, or S$80 per lot. For S$80, you can get about 22 shares based on the issue price of S$3.63.

The broader market was down quite significantly around 27 April 2010 to 29 April 2010 following the sell down due to uncertainty over Greece. 'Unfortunately', Keppel Land has been quite resilient for those few days, and was trading above S$3.8 at times, and was above its cousin stock Capitaland most of the time. These has probably raised the average, and thus an issue price that is not very low.

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