Thoughts on ACEN Perpetual Shares? PHP 1,000 / share - A 7.13% p.a. B at 8.00% p.a. / min 100 shares

[justmyself]

Done a bit of research. Stock performance is okay. Got my shares at around PHP 1.00 so green pa din sya for me. Should I avail or pass? Just want to get additional insights first time if ever to get Perpetual Shares. Or better put money somewhere else?

 

[teadrinkerdeepthinker]

@justmyself ₱1,000/share minimum is 100 lot for ACENB? Tapos 8% fixed for life rate?

 

[hedowns]

@teadrinkerdeepthinker Nakalagay doon sa BDO email

Dividend rate Re-setting and Optional

So hindi sya fixed 8% for life.

 

[musicismath]

@justmyself My broker said madami na daw nakapilang order sa kanila.
Im ordering as well, i just dont know if ill be able to get my full allotment?

 

[ruminator2]

@justmyself I will try to place it but let's hope na makakuha.

 

[coulter123]

@justmyself Do you have a source/prospectus for these rates?

 

[laudeturiesus]

@coulter123 I got an email from BDO re: these rates as well. You can probably confirm the rates from the other parties to this offer (see listing in PSE edge)

 

[taigagirl]

@justmyself Hi. I was wondering if you received your AcenB dividends yesterday? I didnt get mine (bdo sec broker)

 

[justmyself]

noob question: if we buy shares per at 1,000 PHP does the price stay the same if we sell back or if they buy back?

 

[motherapple]

@justmyself Preferred shares are usually very stable in the secondary market. But as with any, it can dip (e.g. Company started to be illiquid, market panic, participants selling at a discount) but it can also appreciate.

Lastly, perpetual shares and perpetual notes are different.

 

[taigagirl]

@justmyself nagresearch ako and still cannot find the answer kung parang bonds ba siya na you will get the principal amount u invested pag nag mature na

 

[cultleak]

@taigagirl As per what I've been able to gather (in the case of ACENB), it's up to the company ata to purchase or redeem the PF shares, saka mo lang makukuha yung principal amount. Else, you'd have to sell sa secondary market. So kapag perpetual shares we'll never know yung maturity date, kasi it's between "when the company feels like it" to infinity.

 

[taigagirl]

@cultleak Salamat!

 

[towerbloke]

@justmyself If with available funds ako gusto ko rin sana umorder neto.

Sayng naka position Kasi lahat

 

[butterflyja]

@justmyself ordered ACENB. IIRC ACENA may rate step-up after 5 years, while ACENB is fixed.

Edit: changed term

 

[taigagirl]

@butterflyja Hi. I was wondering if you received your AcenB dividends yesterday? I didnt get mine (bdo sec broker)

 

[butterflyja]

@taigagirl I got mine, AAA broker ko. If di mo pa din nakukuha next week, call them na.

 

[taigagirl]

@butterflyja Ok na din tnx

 

[syndiseok]

@butterflyja Wouldn't the change be to a higher rate though? Honest question, since that is what I assume from the term "step-up rate" but I really do not know.

 

[butterflyja]

@syndiseok Yes. /@ignissus has a write-up in 2021 about it too:

“Step-up rate”​

Most preferred shares will include a step-up rate, where the dividend paid will increase on a given date (like the 4th anniversary of the IPO) if the preferred shares have not been redeemed by that time. An example step-up term might be: “On the 5th year, higher of 7.5% or 10-year BVAL average plus 6.0%”.