Wednesday, December 9, 2009

Exercise Warrants for the First Time

Call it luck, call it blessing...

I realised that I had 2,000 warrants from Transpac in my portfolio, with exercise price of S$1 one day before XD! With the dividend of 40cts declared by Transpac, it seemed too good an opportunity to miss. (Simple calculation: Pay $2,000 for 2 lots of Transpac shares worth $3,800.)

I called up the agent and was informed that if I submit the form and cashier's order by the "record date", i.e. 10 December, I would still be entitled to the dividend. Well I did just that - with help from my wife who works in Shenton Way.

Besides the profit made, now I have a better idea on Warrant exercising.

2 comments:

ghchua said...

Hi Sanye,

Actually, if not for the tight deadline, you can actually send the completed warrant exercise with the CO attached via mail.

There is no need to go down to the office of the warrant agent at all to exercise a company warrant.

Sanye said...

Hi ghchua,

Precisely. I was overseas and only realised the deadline was so close when I read your blog.

It was fortunate my wife works nearby and could collect and submit the form for me. Furthermore, since she is a staff of the bank the CO's were FOC. :)