Seems like in most of these oversubscribed capital raises the sharesies scaling is horrendous in comparison (even those restricted to current shareholders).
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Seems like in most of these oversubscribed capital raises the sharesies scaling is horrendous in comparison (even those restricted to current shareholders).
Milford got behind it in a big way
The detail will be in the actual offer document but I am going to suggest that if you are not an Ineligible shareholder you will get nothing for doing nothing.
i.e. if you get an entitlement letter it will be you can buy some, all or maybe all & some more of your entitlement, but if you let it lapse you get zero dollars and zero cents.
Whether you will be able to sell your rights on market - wait and see.
Only ineligible shareholders benefit from the shortfall book-build is how I currently understand it.
https://dt.azadicdn.com/wp-content/u...20x445.jpg?200
image source
I think all shareholders who do not take up their entitlements share in the shortfall process.
From the ineligible shareholder letter:
- Any Premium (as that term is defined in the Offer Document) achieved above the Issue Price for New Shares in the Shortfall Bookbuild will be paid (with no brokerage costs deducted) on a pro rata basis to those Shareholders who do not take up their Entitlements or who are Ineligible Shareholders.
https://www.nzx.com/announcements/381049
I read it as any shareholder who doesn't take up their rights can benefit from the shortfall bookbuild as you won't be able to sell your rights on market
Slide 23 'Equity Raising Terms' from the Investor Presentation describes the offer structure
"Pro rata renounceable Rights Offer provides all Eligible Shareholders with the opportunity to participate, with no provision for trading right on market. Shortfall bookbuild provides mechanism for shareholders who have not taken up or sold their rights to realise value"
So, seems I mis-read the bits I read. :blush:
Lucky I put a cute piccy in the post then.
From their doing next to nothing, a nice boost for their clients accounts.
Placement + subsequent discounted rights issue = about 6% return on their outlay in about a month - provided the price continues to hold up. So it will be about 72% annualised provided my maths is ok.