Sunday, August 4, 2013

How to Exercise Your Warrant Options (SGX)

Content extracted from http://wealthbuch.blogspot.sg

Step 1:
Find out who your warrant agent is from
http://www.sgx.com/wps/portal/marketplace/mp-en/products/securities_products/company_warrants


Step 2:
Call your warrant agent up. The phone number is listed on the website above.
You will need to get them to send you the exercise notice form. Give them your address, and they will mail it to you accordingly.


Step 3:
Apply for a cashier's order from your bank. The amount on the cashier's order is equal to the value of the warrants to be converted. Cashier's orders can be ordered using internet-banking for free. I went with DBS. However, the cashier's order from internet banking can only be collected at a few branches. Do check out with branches are available before applying.

A $5 surcharge is chargeable if it is applied at the bank itself and not through internet banking.


Step 4:
Fill up the exercise notice form when you receive it, which will include your name, address, securities account number, and the number of warrants to be converted.


Step 5:
Prepare an envelope, and put your completed exercise notice form, together with your cashier's order into the envelope. Although it is mentioned in the CDP website that your latest account statement is needed, in actual fact, it is not. You do not need to send it to the warrant agent. However, this is my information from calling up the warrant agent for Saizen Reit. It would be prudent to confirm with your warrant agent.




Step 6:
Affix a stamp and send your exercise notice!




There you have it.

Update:
The day the warrant agent receive your notice is the Lodgement date. The warrant agent can decide whether to list your shares at the Lodgement date or the following working day.

Once it is listed, your CDP account will be debited of the warrants, and credited with the new shares. The company will also announce on SGX website the number of warrants converted (without names of course).


You can also find out how to exercise your warrants from here:
http://www.cdp.com.sg/faq/warrant_faq1.html

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