Positve article by Nevil Gibson in NBR 8/7/2011 headed Scott Tech boosts China footprint.page 20.
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Positve article by Nevil Gibson in NBR 8/7/2011 headed Scott Tech boosts China footprint.page 20.
Results of the rights issue posted to the market today.
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- Entitlements not taken up: 854,108 ordinary shares totalling NZ$1.0 million, representing a shortfall in take-up of entitlements of 11%;
- Applications for additional shares under the oversubscription facility: 2,079,367 ordinary shares totalling NZ$2.5 million;
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I was one of those applying for extra shares. It looks like I will only get:
854,108/2,079,367 = 41% of the extra shares I asked for, albeit at $1.20 :-).
Nevertheless this represents a good short term result from a 'today market' perspective. SCT looking quite firm as the market moves backwards. As of now if you want more SCT shares you have to pay $1.49.
SNOOPY
A very positive capital raising.As you point out if you want SCT you have to pay $1.49.Seller at $1.49 has 5,000 for sale.
Main buying strength is at $1.42 for 24,480 ,as the buyer at $1.45 only wants 55 shares.
I don't know that you will get 41% of shares you apply for. My reading of the prospectus is that any shares not taken up are allocated in proportion to your holding at the record date. Hence someone with 100,000 shares will get more than someone with 10,000 shares, even if they apply for the same amount. And proportionality is maintained.
Thanks for pulling me up on my over simplistic interpretation of the scaling Zigzag. I did have a vague recollection that the allocation of extra shares was rather more complicated than I portrayed, but had put those details out of my mind. It will be interesting to see how many extra shares we oversubscribers do get!
If 11% of the new shares were not taken up by existing holders, perhaps if as an existing shareholder you were not to greedy on the oversubscription and only requested about 11% more than you were entitled to, then you might get the lot you asked for?
In another way the institutional book build being cancelled is bad because it makes it more difficult for institutions to build up a meaningful company stake. Their only option now will be to buy SCT on market (shock, horror)!
SNOOPY
I only got one quarter of the shares I applied for. Must have been too greedy. Upside is I get a refund cheque in the mail.
Currently away from my physical mailbox for a few days Under Surveillence, so I will let you know! I note from today's announcement to the stock exchange that interests associated with former chairman Marsh, and Rocklabs founder Devreaux have only taken up some of their rights resulting in a dilution of their respective holdings in percentage terms.
SCT seems to be wearing today's stockmarket market drop relatively well. Trading at $1.40, down about 3%. The associated drop in the NZD/USD exchange rate will IMO be a useful benefit for SCT going forwards.
SNOOPY
Over 2mill. shares traded. A bit more than your average day for sct. Wonder who's selling, and who's buying? Does the estate of Ian Urquart still have a large holding?