Frequently Asked Questions
What are corporate actions?
A coporate action is any event that brings material change to a company and affects its stakeholders, including shareholders, both common and preferred, as well as bondholders. Common corporate actions include stock splits, dividends, rights issues etc. For more information on the following types of corporate actions, please refer to the SGX website:
What is a stock/share split?
In a stock/share split, each of the outstanding shares of a company is divided, thereby lowering the price of each share, while the total number of outstanding shares increases. A stock/share split does not directly affect the company's equity or market capitalisation.
What are dividends?
Cash dividends: Cash dividends are cash payments made by a company out of its earnings to its shareholders. Scrip dividends: Scrip dividends provide shareholders with the option of receiving their dividends in the form of shares instead of cash.
What is a rights issue?
A rights issue is an issue of rights to a company's existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings, within a fixed time period. In a rights offering, the subscription price at which each share may be purchased is generally at a discount to the current market price. Renounceable Rights are often transferable, allowing the holder to sell them on the open market.
Where can I find the list of corporate actions taken by companies listed on SGX?
How much are the dividend charges?
|Cash Dividend||1% on net dividend subject to min of S$1.07 and capped at S$53.50 (inclusive of GST)|
|Scrip Dividend||S$10.70 (inclusive of GST)|
Accounts with multicurrency facility will receive the cash dividend in declared currency unless otherwise determined by the issuer/PSPL.Dividends are subject to tax at source. Tax rates vary according to the respective country's tax rates. Changes may change from time to time at the discretion of Phillip Securities Pte Ltd.Both Cash and Scrip Dividends are subject to foreign broker fees (if applicable).
How much are the corporate action charges?
|Types of services||Cash Offer, Rights Issue, Privatisation Exercise, Merger & Exchange, Liquidation, Redemption of Warrant, Loan Stock or Bonds, Capital Distribution, Tender Sales, Warrant Conversion|
|Fees and charges||S$10.70 (inclusive of GST) + Foreign broker fees and taxes (if applicable)|
What effect do corporate actions have on prices?
Corporate actions may or may not have effect on prices and subject to other macroeconomic factors such as changing market forces of demand, supply, political/economic events, market sentiment etc. For example, a stock/share split has a direct impact on prices: price of the share will be lowered. A company paying out cash dividends may have impact on its share price due to the economic value transfer from company to investors. Accounts with multicurrency facility will receive the cash dividend in declared currency unless otherwise determined by the issuer/PSPL.
What is fractional share?
A fractional share is a share of equity that is less than one full share. Fractional shares usually come about from certain corporate actions such as stock splits, reverse stock split etc.
What is Cash in Lieu (CIL)?
CIL is the payment made in lieu of any fractional share entitlement from certain corporate action.
What will happen to the fractional share/CIL resulting from corporate action?
Some corporate actions may result in fractional shares/CIL. As there are expenses incurred by PSPL in handling such fractional entitlements, your right to any such fractional entitlements will be waived in accordance with the terms governing your account. Your share entitlement from such corporate actions will be rounded down to the nearest full share.