An old friend alerted me on the investment oppurtunity that is Hyflux Water Trust.
Now, the key selling point here is that public shareholders get “preferred yield”. In the event that the earnings of the Trust falls short of its projected DPU, Hyflux (i.e. the water company, Olivia Lum, etc etc) the major shareholder at 30% stake will forego its distribution.
Sounds great. Meaning as a public shareholder, I have a buffer of up to 30% on earnings. Now, Hyflux Water Trust was yielding some ~15% when my friend told me about this.
I wanted to be diligent and find out more. Hence, yours truly emailed Investor Relations (of Hyflux Water Trust) with some due-diligence questions. Look what they came back to me with… nothing.
Date: Wed, May 20, 2009 at 2:24 PM
Subject: Re: Investor Query
To: enquiry@hyfluxwatertrust.com
Still no updates? Tks.
On Fri, May 8, 2009 at 11:24 AM,
<> wrote:
Hi, gathered you guys might have been busy with your recent results announcements. Congrats on the performance.
Any updates on my queries? Thanks.
On Thu, Apr 30, 2009 at 3:40 PM,
<> wrote:
Any updates? Tks.
On Thu, Apr 23, 2009 at 11:57 PM,
<> wrote:
Hi,
I wanted to clarify on a few things about the Trust:
1. Is there a lockup on sale of shares by the sponsor? If so, what is the lockup period?
2. If no or after the lockup period, once sponsors sell’s its shares — does it mean the DPU waiver structure will cease/affected? How will the waiver structure change?
3. If new shares are issued — how does this affect the waiver structure? e.g. is it assumed that the sponsor will always take up all new shares issued, etc?
4. Are the waived dividends by the sponsor cumulative? i.e. payable in the future if there is enough cash?
5. Could you pls give a general idea on how the assets in the Trust are valued? And how often are the Assets valued? When is the next date of asset valuation?
Look forward to hearing from you. Regards.
May 26, 2009 at 8:09 am |
basket… got kangtau never tell me… wtf
May 26, 2009 at 8:13 am |
As I said, I was trying to do due-d. They never got back to me — I didn’t buy. If they did, I would have told you and hyflux water trust would have the honour of having you as a major corner-stone investor!
May 26, 2009 at 1:07 pm |
yawn…. getting damn dis-illusioned about work again…. especially after my hols…. time for more GRQ ideas…..
September 15, 2009 at 12:06 am |
I am not surprised that HWT has not reepsonded to your queries as such information had already been released in their various publications and annopuncements:
http://www.hyfluxwatertrust.com/publications.html
http://www.hyfluxwatertrust.com/images/prospectus07.pdf
Lock-Up Period . . . . . . . . . . . . . . . . . . The period commencing from the Listing Date to immediately after
the book closure date in relation to the distributions to be paid in
respect of FY2009
In any case, if you are uncomfortable or not confident about the Trust’s management, then don’t invest in it.
Personally, I feel that this is an excellent investment instrument that is giving healthy yields of more than 7% based on current price of 69cents or 6.9% based on IPO price of 78cents. I am doubtful that you can find stable returns like this in other financial instruments for the next couple of years.
September 21, 2009 at 1:18 am |
Hi, like to add that this is really a good piece of investment. Malester, if you had done your own due diligence and look at the prospectus, you would have invested by then (May: about 40+cents) and reap more than 50% return, based on the closing price of 70cents yesterday. Water plants are based in China, so it is growing and offering stable returns. Vested.
July 20, 2010 at 3:09 am |
Current $ of 66.5c… do u think it’s still ok to enter?