I'm in for both
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I'm in for both
I got some in the Placement and have applied for my full allocation plus a few extra
I also got in on the placement at $1.96 and also put my hand up for my allocation under the rights issue and the same again in any shortfall. I didn't find the process for bidding for extra shares especially clear. Just seemed you asked for a certain dollar amount of extra shares. I suppose the price is set in some bookbuild the institutions run. Found the process of extra shares a bit opaque but not losing any sleep over it. Arvida good buying at around $2 for the long term. Paid my money yesterday too.
~15% EPS accretive so we are told, with same PE multiple shouldn't the price have gone up? Seems the market doesn't quite believe them?
Has anyone specified a broker when completing the form? It would seem a broker might get paid (0.5%) for doing nothing!
Can anyone explain how the shortfall bookbuild works? It seems the price can be higher than $1.85 and shareholders who don't participate will receive the premium? So what is the benefit in participating? I've got to be missing something.
From their last bookbuild: https://www.arvida.co.nz/investors/n...bookbuild-6116
If anyone can make sense of it for me, that would be much appreciated.
Edit: From the current rights offer document: The price payable for these Shares will be set during the Shortfall Bookbuild, but will be no less than the IssuePrice of $1.85 per Share and no greater than the closing price prior to the day of the Shortfall Bookbuild.Any premium above the Issue Price that is achieved in the Shortfall Bookbuild will be shared between thoseshareholders who did not, or were unable to, take up their rights, in proportion to the number of rights nottaken up.
So if the premium ends up being near the closing price prior to the day of the bookbuild and the SP dips after the bookbuild could you not end up paying higher than market value?
After cashing out a large portion of my portfolio late January/early February to buy a house, I am back in ARV... I sold out on the 1st of February 2021 at $1.82 but took part in the recent placement (including taking up the full entitlement to the rights issue - so an average purchase price of just under $1.95).
I have always believed in ARV (since day 1 - IPO at 95 cents on the 18th of December 2014) and continue to do so... hence I am glad to be back on board (for not too much more of a premium than when I sold earlier this year!)
interesting the rights issue was not over-subscribed
I thought a about 75% subscription/uptake was pretty good - especially given the recent addition of new (and former ;)) shareholders
I will be surprised if the shortfall bookbuild is more than a few cents below $2 (ie much stronger than the rights issue [$1.85] and at or above the placement [$1.96])