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Thu, May 14, 2020 – 12:59 p.m.
The SINGAPORE Airlines (SIA) share price hit a 30-year low on Thursday, dropping 6.5 percent or S $ 0.26 to S $ 3.74 at noon break.
Around 16.6 million shares had changed hands, making the accountant the most active by value on the Singapore stock exchange.
This is the worst sample for the flag operator since 1990, when it was reduced to S $ 3.2509 based on adjusted duties.
Meanwhile, its rights shares, issued under the S $ 8.8 billion cash call, sank S $ 0.285, or 30 percent, from the prior day’s closing price to trade at S $ 0.665 at the midday break on Thursday. Around 30.7 million of these securities had changed hands during the morning session.
SIA rights shares were first trading at S $ 1.01 during the pre-opening session on Wednesday, under the name SIA R and code LRDR, Shareinvestor data showed. Its issue price was S $ 3 each.
In addition to shared rights, SIA also issued Mandatory Convertible Bonds (MCBs) as part of its fundraiser. They were trading at 0.2 Singapore cents for Thursday’s midday break, down 0.3 cents or 60 percent from the previous day’s close. The accountant was the most traded by volume on the Singapore stock exchange, with 126.6 million units changing hands.
MCB rights first opened at 0.1 cents on Wednesday, under the name SIA MCB R and code GANR, according to data from Shareinvestor. Its issue price was S $ 1 for each S $ 1 in the principal amount of MCB rights.
Shared rights and rights MCBs will be negotiated until 5 p.m. M. May 21. Investors who wish to exercise their rights must do so before 5 p.m. M. May 28.
On Thursday, after trading hours, SIA will announce its full-year financial results for the year ended March 31, 2020. It expects to report a small operating profit but a net loss, its first annual loss in the past 12 months. mainly due to its losses in fuel coverage, the airline group said last week.
But the losses may not end there, some analysts have said. They believe that another year with losses might be possible given the “staggering” slump in the April-June quarter, when there were virtually no flights.
On Wednesday, SIA Chief Executive Goh Choon Phong described the coronavirus pandemic as the biggest challenge the aviation industry has faced. In a dialogue with the Securities Investors Association (Singapore), Mr. Goh said the industry is likely to remain highly competitive even after the crisis erupts.
As for SIA’s short 5x Daily Leverage Certificates (DLCs), Societe Generale (SocGen) is extending a one-time exceptional payment of S $ 0.03 per DLC to investors as a “gesture of goodwill”, after some of They protested what they saw as a lack of timely disclosure and unfair pricing by the investment bank.
The Singapore Stock Exchange has also launched investigations into the matter.
Merchants for the SIA short 5x DLCs complained last week when SocGen adjusted the price below what they expected, taking into account both the SIA rights issue and the MCB issue. DLCs were last trading at S $ 0.81 before they were suspended on May 6, after their value quickly dropped to zero when SIA’s underlying shares rose more than 20 percent when trading ex-rights.
Read more: Controversy over SIA DLC shorts comes from risks caused by SocGen’s premature disclosure
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