New shares for a newly listed company

Q&A
1

I’s issued with some shares, free of charge, in a newly listed company, Super Hi Intl Hldg Ltd, How do I record these shares in the transaction? Thanks

2

  1. Where is this company listed? Which exchange?

  2. I do not think there are ever anything that is truly free. Is it part of your compensation or is it because you own something else? Technically, you can put the buy price as 0 but it would mess up quite a few things. My recommendation is at least put the market value (i.e. close price) of the day you receive them.

3

Further to your question, the shares I owned is Haidilao Intl Hldg Ltd which is listed in Hong Kong Stock Exchange.

4

I see. When is it happening? Can you give me more details?

There are two ways you can do this. It is similar to this → Sembcorp Marine acquisition of Keppel O&M – StocksCafe Blog

Basically, Haidilao spent some money to either buy/create this new company. So, you can either treat it as a M&A or dividend since the money could have been used to pay you dividend.

Just that they “forced” you to buy this stock.