Grab Got 10 Years License For Taxi In Singapore- Strange Venture Into Sunset Industy?

We have already seen the video of rows of empty SMRT taxis being parked long term in public HDB carpark. So it is a somewhat mind boggling to learn that Grab has just joined the fray into the local Singapore taxi service sector. Perhaps, Grab saw their competitive advantage in their popular online booking platform giving priority to their own taxi fleet on top of being able to do stop and pick up along the road. Nevertheless, it has been a bloodbath on the local taxi industy (ComfortDelgro and SMRT taxi arm all in trouble) which has been in the doldrums since the coming of Uber and Grab that disrupted their traditional taxi business model. 

I do hope that Grab management knows what they are getting themselves in and have already done their sums. Nevertheless, I view extra competition as beneficial to consumers. 

Quick Thoughts on Frasers Centre Point Trust Upcoming Rights Issue- Potential Trading Opportunity.

Just penning down some of my quick thoughts for Frasers Centre Point Trust ("FCT") upcoming rights issue to fund the purchase of Northpoint City Southern Wing which is a popular mall in Yishun. This exercise is a no choice election but forced to subscribe to avoid dilution kind...so no need to think too much over it, unless there is a downturn in stock market. Only question is whether one want to subscribe for excess rights. The current market price hovers from S$2.170 per unit to S$2.19 per unit after the announcement. The ex-dividend date is 3rd April 2025 (Thursday) and worth S$0.0615 per unit. So if you own 10K units, you will be getting dividends of S$615 in total. I expect the price range to drop to between S$2.10 per unit to S$2.13 per unit after the ex-dividend record date.

1. Preferential Offering Attractiveness Analysis

The issuance price will be between S$2.030 and S$2.070. Assuming somewhere in between of S$2.050, this will be a discount of only +2.4% to the lower end of the market of S$2.10 per unit. If market price hovers at S$2.13 per unit, then it will be at a higher discount of +3.9% to the upper end market price of S$2.13 per unit. Saying that, if the market price tanks due to the current tariff war and other unforeseen macroeconomic events, then one would have to hold and wait it out for the long term. I will probably be subscribing for some excess rights for speculative purpose in the hope that I can sell them off for a tiny profit to eat egg fried rice with pork chop at Ding Tai Fung.

2. Indicative Timeline For Retail Preferential Offering

For fellow retail investors who are interested in this exercise, please take note that the tenative commencement timeline is 8th April 2025 (Tuesday) for retail tranche offering. This exercise will end in about a week, that is, 16th April 2025 (Wednesday) so do indicate your acceptance by this date.

Parting Thoughts

Personally, I am not extremely excited by this rights issue as FCT has higher potential business risks ahead with the Johor Bahru Rapid Transit System ("RTS") rail project that may take away many shoppers from Woodlands and other suburban malls. In addition, FCT is also in trouble in one of its smaller Mall in Hougang where the government is launching a huge plot of land this year for a mega shopping mall just next to it. Frasers will most likely be bidding aggressively for this intergrated project as a defensive maneuver (similar to what they done for Northpoint City integrated development). But we will have to wait and see what happens next.

Life Reflection- "The pain of losing someone we love is the price we pay for the privilege of having loved someone and having that person be a part of our lives".

Would you have chosen to re-live your life differently if at the age of 21 during university time, you happen to steal a glimspe of the future and gleaned from there that you will have stage 4 cancer (that continues to spread aggressively despite all medically available treatment) in another 20 years time? I was left pondering this question when I heard the poignant news of a friend who unfortunately have a bad prognosis from her medical specialist albeit early pick up of the medical issue and extensive medical treatments as I understand. There is also the issue of the young children.....what will happen to them after the parent is gone? I am still reeling in from the shock and unfairness of life and I was despondent over this devastating news during the entire long weekend.

Life is full of uncertainties, tomorrow isn't promised or guaranteed. Spend more time with your loved ones as much as possible.