Hyflux is offering $200 million worth of preference share at $100 per share with 6% dividend p.a.. The Class A Preference Shares will be cumulative, non-convertible and non-voting and also non-dilutive to existing ordinary shareholders. As the Hyflux preference shares are cumulative in nature, any dividends not paid will be accrued and owed to the investor.
Dividend, if declared, will be distributed semi-annually on 25th April and 25th October each year. The minimum subscription is 100 shares ($10,000) and in subsequent multiple of 10 shares ($1000).
The application starts from 14 April 2011 at 9.00 a.m. to 20 April 2011 at 12.00 noon. The preference shares are expected to be listed and traded on the Main Board of the SGX-ST from 26 April 2011. Hyflux has the option to increase the size of the offering to S$400 million if applications or indication of interest received exceed the offer size.
Application can be made through electronic applications via ATMs of the major local participating banks, such as DBS Bank (including POSB), Oversea-Chinese Banking Corporation Limited and United Overseas Bank Limited or the internet banking websites of DBS Bank and the UOB Group.
If the preference shares are not redeemed by Hyflux on or after 25 April 2018, the dividend rate will step up to 8% per annum. The implication is also that you will not get back your capital investment then and may have to wait for a longer uncertain period.