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.