Aug 20 2008
UOB Preference Shares
Following the lead of DBS and OCBC, United Overseas Bank Limited (UOB) might be the third local bank to issue their own UOB preference shares during this period of financial turmoil.
Newspaper reports indicated that the yield might be 5.05%, which is slightly lower than the 5.1% offered by OCBC recently.
UOB has confirmed that they are currently considering issuing the preference shares and had already submitted a listing application to The Singapore Exchange Securities Trading Limited.
Once the necessary approval has been obtained, more details will be posted here of the UOB preference share offer.
Dear Officer-in-charge,
Can I know when the 5% Preference share dividend is to be paid? I bought on 15 Sep 08 and it should be 6 months now.
If you have any queries, please email me at the above addr.
Best Regards
Reply
Hi,
Just read that the UOB preference shares may be redeemed on 15th Sept 2013 or 2018. Does that mean that unlike the OCBC preference shares which will only be redeemed in 2018, the UOB ones do not have the guarantee of only being redeemed in 2018?
Thanx,
Helen
Reply
lioninvestor Reply:
April 23rd, 2010 at 2:32 pm
Hi Helen,
Are you concerned about the early redemption? Note that the bank has the right but not the obligation to redeem.
Reply
helen Reply:
April 23rd, 2010 at 10:01 pm
Hi,
Yes, I’m concerned abt the early redemption as the interest paid on the shares will drop. If I’ve bought the shares at more than
$100 per lot, the price will definitely drop when it is closer the redemption date.
PS
What’s the difference between the OCBC 5.1% Preference shares and the OCC5.1% shares,
Regards n thanks for your help.
Helen
Reply
lioninvestor Reply:
April 23rd, 2010 at 10:14 pm
Whether the redemption takes place will depend on current interest rates at that time as well as the bank’s capital requirements. It is hard to say.
You can read this article to further understand how the pricing works:
http://www.lioninvestor.com/preference-shares/
The OCBC 5.1 and OCC 5.1 are two different preference shares issues (OCC is also issued by OCBC but via another entity OCC). So their T & C might be different. You can get your stock broker to dig out the details for it.
Reply
Can anyone confirm whether preference shareholders can attend the AGM of the company just like ordinary shareholders?
Reply
Hi
How can I start to buy preference share?
Go into internet search ? How can compare which bank offers better return? What is the minimum amount to purchase?
Thanks
Reply
lioninvestor Reply:
July 14th, 2010 at 2:27 am
Hi JJ,
Preference shares are listed on the stock exchange. Look for the name of the bank. eg DBS Bk 6% NCPS 10
The 10 at the end means it’s traded in lots of 10 shares. At a price of around $104, it will cost about $1040 per lot. If a dividend of 6% is paid, you can calculate a rough yield as 60/1040.
Reply
Hi
I would like to know – how to start?
Open an account with bank? The stock exchange ? or just directly purchase from personal internet banking ? Any admin fee ? Penalty when redeem early ? Any risk than Fixed deposit ?
Which website to learn the basic knowledge before purchase.
Thanks
Reply
lioninvestor Reply:
July 14th, 2010 at 8:29 am
Hi JJ,
Have you bought normal shares before?
The procedure is exactly the same as buying shares. You can drop by the branch of any stock broking firm and they can show you the steps.
There is no redemption date. If you need to redeem, you sell it on the open market (at whatever the market price is).
Reply