AIR - Air NZ.

[Dassets]

Does that mean that you now have to cover 1.632 shares for say, the $1.26 share you shorted it on Friday?

Means at yesterday’s closing price of 90.5c, you now need to pay $1.47 (loss of 19c) to cover your short?

Air closed on Friday at $1.26 cum rights so at yeaterday’s closing price of 90.5c, the share is actually up 39.5c on my calculations - so CMC calculation is working in your favour.

No it works against a short position. The share price was well above the theoretical ex price of 77.5. At one stage it was at 108 when the nzx said it was down. Sharesies kept buying thinking they were still getting the rights. 108 is almost a post covid high.

[alokdhir]

A share trade settles 2 business days after it is traded. Friday April 1st was the last day you could buy AIR and receive the entitlement to the rights issue because your shares had to be registered 2 days later which is by 5pm tomorrow April 5th which is the record date for the rights entitlements.

So today the shares started trading ex-rights and AIRRG started trading because if you had bought or owned 1,000 AIR on Friday then you have the ownership of 1,000 AIRRG which gives you the right to buy another 2,000 shares at 53c each. If you sold your AIR today that trade won’t settle until Wednesday April 6th after the record date but you’d still own the AIRRG which is why they could start trading today.

My question was about legality of futures trade on NZX ...As per ASB Securities rules ...U r not allowed to sell shares unless physically or actually showing credited in your registry account ...not what will eventually come at a future date ...as they do cross check with registry share balance before sending order on market . So if thats allowed to others like u mentioned then ASB Securities clients are at a disadvantage as they cant do what others can !!! This was my query

[peat]

Do you feel cheated Peat ?

by the outcome not by CMC , though stoploss's comment makes me wonder.
I've written this exercise off mentally.
It is too hard swimming against the tide here.... sometimes the market isnt rational but meh , Im over it.
I've got good work, paying well. I'm just slowly closing out all my speculative positions and increasing my longer term investments.

[Rawz]

Just glad I stayed away from this. Didnt understand it or the value to be hand.
Will just wait for the dust to settle and see what the wash up is.

[LaserEyeKiwi]

It's astonishing to see how irrational the market in this stock is. Setting aside today's bizarre action, it has been over-valued since, what, 2020. What other NZ stocks are trading at irrationally high or low values, or is AIR unique in this respect?

MCK (Millennium Copthorne) is still trading as if it’s hotel assets are worth zero. Those hotel assets were assigned an underlying market value of $567 million in the most recent annual report issued 2 weeks ago.

MCK current market cap of approx $390 million (MCK + MCKPA) is about the value of its non-hotel assets (66.3% stake in CDL, $96 million net cash on hand, Sydney apartments being sold down)

[winner69]

Further clarification to the clarification yesterday on AIRRG!

So the rights issue is effectively a 1:1 at $1.06! Not as deeply discounted as was made out to be the case in the first place!

https://www.nzx.com/announcements/390065

Clear as mud now eh

[Sideshow Bob]

It's astonishing to see how irrational the market in this stock is. Setting aside today's bizarre action, it has been over-valued since, what, 2020. What other NZ stocks are trading at irrationally high or low values, or is AIR unique in this respect?

Has this become more common/apparent since the advent of Sharsies, or other online platforms? Lots of smaller holders/orders, lots of trading but collectively owning a bigger slug of the company - Sharsies with AIR >6%, over 12% of traded not held by the majority owner?

[mfd]

Further clarification to the clarification yesterday on AIRRG!

So the rights issue is effectively a 1:1 at $1.06! Not as deeply discounted as was made out to be the case in the first place!

https://www.nzx.com/announcements/390065

This doesn't effect the dilution though, if I'm reading it right. Still going to be three times as many shares outstanding once this has settled, it's just that you only get one rights share which entitles you 2 cheap shares, rather getting two rights shares which each entitle you to 1 cheap share.

Same outcome.

[JohnnyTheHorse]

This doesn't effect the dilution though, if I'm reading it right. Still going to be three times as many shares outstanding once this has settled, it's just that you only get one rights share which entitles you 2 cheap shares, rather getting two rights shares which each entitle you to 1 cheap share.

Same outcome.

Agree, that's my understanding of it. The TERP in the offer document was correct (80ish cents).

[keerti]

Clear as mud now eh

You think!

• eligible AIR shareholders on the record date will receive one renounceable right for every one existing AIR ordinary share, which enables eligible holders of that right to subscribe for two new AIR ordinary shares
• each AIRRG right represents an entitlement to subscribe for two new AIR ordinary shares