hellaby rts

[Nuts]

a bit of advice please . i have 1777 hellaby rts to take up or sell . if i take them up what is the possible result on the share price after they finish trading ? i see they are trading for around 0.47 cents at the mo .i dont think i will keep them permantely if i take them up but bit unsure how this works ? any advice appreciated thanks.

[winner69]

Its all theory and believers in an efficient market would say that the HBY heads would stay about the same as they were just prior to the day the new sharers are issued.

if not taking up the new shares don't forget to sell them before the date they stop trading

And as you believe the HBY story (why else would you have over 4,000 shares) remember if you don't take up the new shares your share of the future profits is less than they are today, ie dilution

You'd be boots an all wouldn't you ... and maybe even ask for more

[macduffy]

This isn't advice to anyone but I'll be taking up my rights and applying for a few more. Although with the rights trading at a healthy price I doubt that there'll be many free ones to go around!

[Nuts]

Many thanks fellas i believe i will take up my rights , and see what happens

[Jaa]

I think they are still lacking in confidence a bit. Should be no need to pay a broker stamp fee of 0.5% and to bother with an underwriter for such a deeply discounted rights issue.

Seems very similar to Tower's rights issue last year, no compelling reason for either company to raise capital now except perhaps thats the best time to do it. The number of rights not taken up in the Tower issue was about 9% from memory so would expect something equivalent here?

A question I have is whether the underwriters 2% fee is based on the amount they ending up underwriting or the total they agree to underwrite?

[macduffy]

I still think there won't be too many unsubscribed rights to go around but I've put my hand up for plenty, just in case. Seems worth the punt!

[zigzag]

I still think there won't be too many unsubscribed rights to go around but I've put my hand up for plenty, just in case. Seems worth the punt!

I think you are right macduff. I've applied for extra, but I expect to get a large part of my monies returned.

[macduffy]

Head shares up another 16c today to $2.04.

Money for old rope if it happens but chances of extra shares fairly remote now, I would think.

[macduffy]

I live in hope that many small holders can't be found and the pool will be a reasonable size. ... Sucks to be an underwriter in situations like this.

A thought just occured to me ... If a broker is holding HBY shares in a nominee account and the holder doesn't subscribe, can the broker subscribe to the extras and pocket the shares?

Difficult to get away with that when the rights have a definite value in the market. A nominee who allowed rights to "lapse" in those circumstances would have a lot of explaining to do if subsequently challenged, especially if standing instructions from the client were to sell rights if the beneficial owner can't be contacted, etc.

A different matter when there are no saleable rights involved, eg in a Share Purchase Plan, but a nominee would still be liable to explain that he acted in the beneficial owner's best interests.

[winner69]

Agreed!



It appears to be holders that are paying the broker stamp fee?



Seems to be the total they're underwriting. i.e. 2% of the 70% of the $28mill ... About a $400k fee?

If there are heavy over subscriptions this is going to look at tad expensive and Mgt will some explaining to do. Shame they didn't feel bullish enough to have a larger oversubscription pool (alternatively a slightly less discounted offer).

Lacking confdendence / not feeling bullish is a consequence of pissing off so many punters over the last five years with such wealth destruction

Remember this is the company had great managment when the share price was heading up to $7 but that same management were useless when the shareprice headed south ... were they really that great or that useless god only knows .... its the punters who drove the shareprice up so high who were the stupid ones probably. Management has changed ... now the shareprice is heading north suspose the current lot a re great managers eh

Piss pnters off and you become the pariah of the sharemarket .... not many want to knwo ... even Belg has been in and out over the years

So you need to to make a decent offer to get people to put real money into the business ... nobody (except those who reinvested dividends) has done that for years and years.

Will be interesting where they go from here ... still have a mish mash of businesses ... but thats not unusual for HBY who seem to have dabbled in so many things over the years its not funny

[percy]

Wife told me the CEO of HBY with be on Radio live tomorrow morning.Not sure whether it is at 9am or more likely at 10am.

[Joshuatree]

Anyone buying up a few to get the placement? I have little indepth knowledge re this company but it seems they're run well. cheers JT

[macduffy]

See also thread "HBY Chart".

The placement has or will be made to instos, followed by a Share Purchase Plan issue for all shareholders. There is a strong possibility that allocations will be scaled back, depending on uptake, as it's not a very big issue. Better check that the shares havn't already gone ex issue , if thinking of buying a few.

[macduffy]

It seems that the shares are already ex issue. Shareholders will be eligible if on the register on 8 April. As settlement of a purchase takes place 3 business days after purchase it appears that ex issue date was yesterday. You might want to verify that with your broker, if interested.

http://www.hellabyholdings.co.nz/Reports/AKLDOC01-_2751918-v1-Harvest_-_Market_presentation_27.3.2013.pdf

[Joshuatree]

Thanks macduffy