25th Community Meetup: Pinduoduo Stock Analysis & Q426 Market Outlook

Last week, I traveled to Johor and attended the Extraordinary General Meeting (EGM) held by Well Chip, in relation to the Rights Issue for the upcoming aggressive expansion.

I shared my initial thoughts on the Rights Issue when Well Chip first announced:

Just to share something interesting. Well Chip management stayed in Singapore, so they need to travel down to Johor to attend the EGM that day. Apparently that is the first day of Singapore’s school holiday, so the Causeway Link was very jam. The whole management team was late to the EGM for 1 whole hour.

Details of Rights Issue

A summary of the Rights Issue:

In simple words:

• Every shareholder will be given the 1 “Rights” for every 5 Well Chip shares, e.g. 200 Rights for 1,000 shares. This “Rights” will appear in your trading account;

• Shareholders can choose to exercise or sell the “Rights”;

• If shareholder exercise, then they need to pay the the issue price (to be determined in end-Sep) for every right to receive Well Chip shares; and

• If shareholder sell the “Rights” on the market, shareholder will receive the market price of the “Rights” and cannot exercise the “Rights” anymore.

The reason for the Rights issue:

Notes from EGM

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