Some useful notes for you on this offer:
- Since this is an IPO, no commissions are charged should you want to subscribe. Normal commission rates apply upon selling though. (Just don't expect much in terms of capital appreciation)
- These preferred shares can also be traded in Philippine Stock Exchange (PSE)
- Minimum lots for subscription is 500 but once the shares are listed, then board lot rules apply and you can sell your 500 shares in lots of 10.
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| image from etftrends.com |
Below are more details in COL’s website:
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PUBLIC OFFERING OF SERIES G PREFERRED SHARES OF FIRST GEN CORPORATION
Please be informed that the Board of Directors of the Exchange approved on April 25, 2012, the application of First Gen Corporation ("FGENG" or the "Company") to list up to 100,000,000 Series G Perpetual Preferred Shares with a par value of Php10.00 per share to cover the Company’s Follow-On Offering (FOO or the Offer), at an Offer Price of Php100.00 per offer share.
THE OFFER:
THE OFFER:
Offer Price | : | Php100.00 per share |
Minimum Subscription | : | 500 shares, and thereafter in multiples of 10 shares |
Dividend Rate | : | 7.7808% per annum |
COL Offer Period | : | May 3 - May 8, 2012 3:30 P.M. |
Tentative Listing Date | : | May 18, 2012 |
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In case you’re wondering what preferred shares are, Investopedia explains it for you:
A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have voting rights.
The precise details as to the structure of preferred stock is specific to each corporation. However, the best way to think of preferred stock is as a financial instrument that has characteristics of both debt (fixed dividends) and equity (potential appreciation). Also known as "preferred shares".A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have voting rights.
The precise details as to the structure of preferred stock is specific to each corporation. However, the best way to think of preferred stock is as a financial instrument that has characteristics of both debt (fixed dividends) and equity (potential appreciation). Also known as "preferred shares".
Now, is this a good offer for you?
Well, here’s an insight from our friend Sir Aya Laraya:
This is actually a decent return -- especially given the alternatives for 50k in the fixed-income market.
There you have it! Have fun and millions investing!
