Hitting the Excess Trail for YTL Power Warrants

Is it worth it?

There are many who would venture to gamble on obtaining additional shares through the excess shares application route.

Remember there are rules that you need to abide by if you want to make it a successful outing.

The rules of distribution is determined by the Board of Directors (BOD).

In the case of the distributions of excess warrants for YTL Power, the BOD has decided on the following criteria:

Will you get what you applied for?

Firstly, to minimize the incidence of odd lots.

I am not very sure whether odd lots means in 1000 units or the 100 units tradeable lot. I think they likely mean the latter.

So, if you have 10 shares and applied for 90, you will likely get it.

Secondly, they allocate according to your shareholdings when the offer was made based on a pro-rata rate but subjected to the maximum you applied for.

Assuming you have 20,000 shares in YTL Corp when the offer was made, they will use this shareholding and pro-rate the excess shares to you. Let's say the BOD approves 50% of whatever you hold subject to the maximum you applied for.So, when you are entitled for 200,000 units of YTL Power warrants, they could offer you 100,000 units.

Thirdly, they could give you according to a pro-rata of the excess units that you have applied. This is a more subjective approach  of fixing a formula of the units you applied for. If the BOD should decide to give you 10%  of 50000 units, then they will just offer you 5000 units.

Playing excess shares can be rewarding for good companies.

I wonder who actually bought the excess shares for Dijaya?

There must be a reason for doing so, because you can buy it so much cheaper from Bursa KL. Buying rights will already bring you losses, why magnify if more painfully with excess.