Will MBSB Rights Go Further North?

Capital Call

Before the Provisional Offer Letter (POL)letter was traded, MBSB was treading a price level of about RM 2.70.

Then it fell to about RM 2.10 on the listing of the POL where the POL fetches about 50 over sen.

Before it ceased trading the POL was traded at 46 sen.

It you add RM 2.19 to 46 sen, it means the original MBSB shares would now be at a theoretical price of RM 2. 65, a whisper from the RM 2.70 level.

So, when the rights subscription closes on 13 January, every one will have to add another RM 1,650 to obtain the new shares.

So, RM 2,650 - RM 1,650 will give you a  profit of about RM 1,000.

Taking a theoretical loss of  about  RM 50 from  rights cum level, this will leave you with a net profit of about RM 950.

So, on the surface, it looks like the MBSB rights may even go  further northwards.

My two sen's worth, not discounting rumour mongering of a potential RHB take-over.