Full Annual Report 2006 - Singapore Technologies Engineering

THE WINNING SPIRIT ST Engineering AR 2006 132
Notes to the Financial Statements 31 DECEMBER 2006
(Currency – Singapore dollars unless otherwise stated)
3. SHARE CAPITAL (continued)
(iii) Details of share options exercised
PROCEEDS
EXERCISE FROM SHARE SHARE
NO. OF SHARES PRICE ISSUE PRICE
$ $’000 $
2006
January to March 21,715,361 0.373 – 2.720 46,736 2.88 – 3.12
April to June 3,454,019 1.390 – 2.720 7,417 2.63 – 3.30
July to September 2,403,556 0.373 – 2.720 4,580 2.66 – 2.98
October to December 3,380,068 1.290 – 2.720 7,172 2.94 – 3.20
30,953,004
2005
January to March 11,128,494 0.357 – 2.680 21,126 2.35 – 2.59
April to June 2,824,879 0.422 – 2.680 5,261 2.40 – 2.57
July to September 4,315,761 1.290 – 2.680 8,622 2.48 – 2.63
October to December 3,961,384 0.357 – 2.720 7,772 2.46 – 2.86
22,230,518
The fair value of services received in return for share options granted are measured by reference to the fair value of share
options granted. The estimate of the fair value of the services received is measured based on a binomial model, taking into
account the terms and conditions upon which the options were granted. The following table lists the inputs to the model used
for the years ended 31 December 2006 and 2005.
2006 2005
Expected dividend yield (%) (-- Management’s forecast in line with dividend policy --)
Expected volatility (%) 17.02 – 23.31 18.66 –19.20
Risk-free interest rate (%) 2.71 – 3.19 1.90 – 2.38
Expected life of option (years) 2.49 – 5.25 2.50 – 5.25
Exercise price ($) 2.84 – 3.01 2.37 – 2.57
Weighted average share price ($) 2.80 – 3.01 2.37 – 2.57
The expected life of the options is based on historical data and therefore not necessarily indicative of exercise patterns that
may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may
also not necessarily be the actual outcome.
No other features of options were incorporated into the measurement of fair value.