I have 1 lot of DBS share with the buy in price 9.88.
The right issue reminds me of Standard Chartered Bank (SCB) who has just completed the right issue on Nov 2008.
The announcement was made during 24 Nov 2008, let's look at how is the market responds:
On Nov 24, SCB open at 728, declines to 695, 4.5%, and bounce back to 725, thanks to the strong rally of 10% rise FTSE100 on that day.
On Nov 25, the price shoot up to 840, a 15% rally.
Will DBS share behaves the same way? at closing price 9.37, DBS cannot really claim they are trading at 45% discount, and this remains less attractive to the investors.
The Rights Issue price of SGD 5.42 per share represents approximately 45%discount to the last traded share price of SGD 9.85 on 19 December 2008 andapproximately 35% discount to the theoretical ex-rights share price of SGD 8.37 pershare.
I would love to see whether DBS share price will rally these few days until Friday to prove my guessing ( through analysis ) is correct.