SATS Rights Issue

Update 28th Mar 2023

Stan Weinstein
30-week Moving Average

chart created using trading view

Update : 9th Mar 2023

Expected date of allotment. issuance and crediting of Rights Shares: Wednesday. 29 March 2023 

Expected date of commencement of trading of Rights Shares: Wednesday, 29 March 2023 

Expected date for refund of unsuccessful applications (if made through CDP): 29 March 2023 

Update : 7th Mar 2023

based on some ground work, the rights are supposed to be credited into CDP account already - since yesterday

while using ATM (see how to subscribe for rights step-by-step) is a common choice before for subcribing the shares, it appear that investors will receive a letter soon with a QR Code for rights subscription with PayNow as a payment option - see picture below:

Valuation (Target Price)

Based on CGS-CIMB analyst view, here, in summary:

The target price for SATS was previously set at S$3.21 (WACC: 7.7%) using DCF analysis, assuming a rights issuance of 314 million shares at a discounted price of S$2.55 per share, which was 15% lower than the market price of S$3.00 at that time. However, the recent increase in the number of shares issued and a lower subscription price of S$2.20 has led to a revision of the DCF-based target price for SATS, which is now S$3.10.

-----

Update 3rd Mar 2023:

SATS rights subscription schedule:

Trading of Rights : 7th March 2023 - 15th March 2023

Subscription of Rights Shares:  7th March 2023 - 21st Mar 2023 (via ATM - generally)

-----

SATS Ltd. has announced a renounceable, underwritten rights issue to raise gross proceeds of approximately S$798.8 million to partially fund the acquisition of Worldwide Flight Services (WFS). The rights issue will be priced at S$2.20 per share, and SATS will issue 363.1 million new shares via the rights issue. The record date for the rights issuance is March 2, 2023,.

SATS will trade ex-rights on March 1, 2023. To be eligible to subscribe to the rights issue, investors must hold SATS shares by the record date of March 2, 2023.

Based on general estimates - details of the rights trading period and subscription deadline have yet to be disclosed, _expect the rights trading period to be between the second and third week of Mar 2023_ given the expected acquisition completion date. 

Subsciption time period of main shares using the rights have yet to be determined / announced as of now.

Reference:

SATS rights issue to fund WFS purchase

Post on SATS on 22nd Feb