To complain about scaling is a bit rich - if you were a small shareholder and there was an over subscription you were always going to get a big a small allocation and a large refund.
Why are people now surprised ?
I wasn't fussed about adding more shares but did send the minimum amount. ($1000). Received 43 shares...Hahaha
I was mislead to what the record date was for scaling.
On both page 25 of the SPP presentation and page 10 of the AGM presentation, it says:
"Subject to demand, scaling to be pro rata based on shareholding as at the Record Date"
*Record date being Tuesday 12th September as stated on page 6 and 14 of the SPP booklet
However on page 12 of the SPP booklet it says:
"If Turners receives applications in excess of $5 million, it will scale back all applications on a proportionate basis by reference to the size of existing shareholdings and note holdings held at the time of allotments."
So the presentations are saying the scaling is applied based on your shareholding at the record date and the SPP booklet is saying the time of allotments.
I didn't notice this discrepancy until now. I was going on what the presentations were saying. My fault for not reading through the SPP booklet more carefully. Had I noticed this earlier, I would have contacted Computershare/Turners for clarification.
As McGinty says, his SPP shares were scaled based on his shareholdings held on the day of allotment, not the stated record date.
Even though it's my responsibility to read through the SPP booklet properly, I still feel they should have informed us about this discrepancy of scaling dates between the presentations and SPP booklet, as it can mislead shareholders (as it did for me, and maybe McGinty).
Just checked and got and 1/3, way less than expected. 5mill was just too less for the demand - I expected some scaling but 1/3 isnt as good as expected. Oh well, will continue buying on market:)
Any one who is upset, should ring Todd Hunter at 021722818 and let him know.
Its clear that larger shareholders got the lions share but what's also clear is that they have received the most punishment over the last few months as the SP has steadily declined from $3.90. The moral of the story here is this is just like going to the gymnasium. "No pain, no gain"
Where the fiasco really lies is in the issuing of $25m in a hurry to selected institutions / friendly larger shareholders / friends relatives of the directors / management ? at a deep discount of a whopping 10% to the prevailing SP and leaving shareholders out in the cold with a pathetic $5m. Did the directors really imagine this wouldn't affect the SP ?
Taking into account the confusing mixed messages in the offer documentation in terms of the methodology by which applications would be scaled I think you could pretty well sum this whole capital raise up as "Amateur "
I also note that at no point whatsoever are management or directors highlighting the fact that their forecast growth of ~ 27% is actually more like ~ 9% on an EPS basis.
Make of that what you will...