Friday, April 15, 2011

6% Class A Preference Shares by Hyflux

Apply for it!

This is a 7 year preference shares offered by Hyflux. After the maturity in 2018, if Hyflux do not intend to redeem, they will offer 8% per annum dividend to holders of the shares.

The above application will close on 20 April 2011, 12 noon.

For the in defensive investors, this is a good chance to own preference shares that gives 6% per annum dividend. Very rare that a company can offer such a high rate.

For the application, you will need at least $10,000.

With $10,000 invested, you will receive $300 every six months for 7 years. That's a total of $4,200 dividend, a total return of 42% for seven years. What's more, the opening price of this preference shares in the SGX is definitely going to be higher than the application price.

Highly encouraged to apply for it. However, if these shares are over subscribed, then there will be balloting. Hence you may or may not get it after paying $2 administrative charge when applying through the ATMs.


Disclaimer: All types of investment carry risks. Readers are advised to invest at their own discretion.


  1. Hi Jackie,

    Thank you for your post.
    I'm looking at stock investment but in your opinion, what are the chances of a crash/correction given the possible inflation and rise in interest rates?

  2. I will not be able to advise on that. As value investors, we invest as and when the price is right. We do not predict what happens next. Currently, there are still some undervalued stocks that runs wonderful businesses. But I am sure that the property sector has overheated jist like 1996. We just have to wait for the next 'big' thing to trigger the fall of property prices.

  3. Thank you for your views, and that from a value investor's point-of-view

  4. Hi Jackie

    I have applied the Hyflux preference shares through ATM but till now have not received any receipt or doc from the Bank or the Company. Pls advise what happen to my purchase. Did I get the shares or not? Or is there balloting and when?

    Thank You for your advice.

  5. Hi Emily,
    You should be notified by now, whether you have successfully applied for the shares. Mine was partly successful, the rest were refunded.

    Hope you were successful in your application!

  6. Hi Emily,

    You should receive the notification from CDP by now. If not, you can check with them. Alternatively, you can check your bank account to see how much money has been refunded back to you. Then you will know how many share you got.
    I did not hear or read about balloting this time round, therefore, anyone who apply should get part of the application amount.

  7. I like the way you have analyzed. Please share some more examples related to stock holding companies.

    Singapore dividends