That's right. We have at least 3 months from the bonus warrants proposal announcement in Jan to April-May to consider when to pare down our existing mother shares and get the money ready to exercise the free warrants. Moreover, we have up to three years to decide when to exercise the warrants after getting them free.
Correct me if I'm wrong. For long term shareholders, it's probably better to convert the warrant immediately so that one is entitled to the dividends by holding mother shares. This is probably the reason that the management designed the warrant as non-tradable in the first place, with the objective of encouraging early conversion.
For shareholders who have not reduced their holdings, and who don't want to take the risk of topping up with additional money, it's still better off that they convert their warrants immediately after ex date and sell down a portion of their shares concurrently.
If my reasoning above is correct, there could still be short term selling pressure after the ex-date.
Yes I also think that it is best for long term shareholders to exercise the warrants as soon as they receive the warrants, so as to get entitled to any future dividend payouts and to participate in future growth of the company. That's part of the reasons why YTLP bosses make the warrants non-tradeable, but the main reason of making the warrants non-tradeable is to encourage early exercise as the company will need to get the money ready for any good opportunity that may present itself in 2H 2025 or early 2026.
For those who have not pared down their holdings after the warrant proposal announcement, they had plenty of time to do it since Jan to sell some mother shares at above RM3.50. I think they will have the chance again soon as I expect the share price to continue rising to above RM3.50 in next few weeks, as YTLP has secured the massive project of laying dark fibre along the 1,600km railway tracks. So I think it is better to wait for the warrant entitlement date (sometime in May) before they pare down the mother shares, so they can get entitled to the free warrants, then only sell some mother shares as they exercise the warrants in May or June.
I do not think there will be lots of selling pressure after the ex-date of warrants, as I think many have already pared down current holdings (including myself and friends I know). Institutional funds will not need to pare down holdings after the ex-date. Those retail investors who have the extra money to exercise the warrants also may not sell any mother share after the ex-date. Any selling pressure will be short-lived as YTLP delivers more lucrative projects or secure more good deals.
YTL Power typically declares the first interim dividend at its Q3 result announcement by end May. I do not expect it to be higher than last year, though.
对长期投资者来说，我觉得这个免费认股权证很好，因为有很长的时间让认购者筹集认购的资金。我相信杨老板。
That's right. We have at least 3 months from the bonus warrants proposal announcement in Jan to April-May to consider when to pare down our existing mother shares and get the money ready to exercise the free warrants. Moreover, we have up to three years to decide when to exercise the warrants after getting them free.
Correct me if I'm wrong. For long term shareholders, it's probably better to convert the warrant immediately so that one is entitled to the dividends by holding mother shares. This is probably the reason that the management designed the warrant as non-tradable in the first place, with the objective of encouraging early conversion.
For shareholders who have not reduced their holdings, and who don't want to take the risk of topping up with additional money, it's still better off that they convert their warrants immediately after ex date and sell down a portion of their shares concurrently.
If my reasoning above is correct, there could still be short term selling pressure after the ex-date.
What do you think?
Yes I also think that it is best for long term shareholders to exercise the warrants as soon as they receive the warrants, so as to get entitled to any future dividend payouts and to participate in future growth of the company. That's part of the reasons why YTLP bosses make the warrants non-tradeable, but the main reason of making the warrants non-tradeable is to encourage early exercise as the company will need to get the money ready for any good opportunity that may present itself in 2H 2025 or early 2026.
For those who have not pared down their holdings after the warrant proposal announcement, they had plenty of time to do it since Jan to sell some mother shares at above RM3.50. I think they will have the chance again soon as I expect the share price to continue rising to above RM3.50 in next few weeks, as YTLP has secured the massive project of laying dark fibre along the 1,600km railway tracks. So I think it is better to wait for the warrant entitlement date (sometime in May) before they pare down the mother shares, so they can get entitled to the free warrants, then only sell some mother shares as they exercise the warrants in May or June.
I do not think there will be lots of selling pressure after the ex-date of warrants, as I think many have already pared down current holdings (including myself and friends I know). Institutional funds will not need to pare down holdings after the ex-date. Those retail investors who have the extra money to exercise the warrants also may not sell any mother share after the ex-date. Any selling pressure will be short-lived as YTLP delivers more lucrative projects or secure more good deals.
I hope they give a good dividend in the next quarter earnings and this would catalyze early warrants conversion!
YTL Power typically declares the first interim dividend at its Q3 result announcement by end May. I do not expect it to be higher than last year, though.
ytl and related party's portion consist pretty much majority of shareholding, EGM considered default approved
I would expect so, as YTL can vote and EPF has also bought in the idea.