Originally Posted by
Ogg
KMD has doubled from placement price of only 50c.
KMD was not in a distressed situation when it pro-actively raised the capital required. the issue was a 1.2 : 1 vs a 2.83 :1 here.
Underwriters unlikely to get much stock. Only got 4% of issue currently. Most will take up their entitlement in full. Exlcluding perhaps Rugby NZ and RugbyPass shareholders.
Time will tell. I expect underwriters to end up with >20% of the underwritten stock.
Bank happy to lend more, now $200m + extended 1 year.
You can be sure that the banks will only allow drawdown subject to certain conditions and covenants being met.
Doubt they will get more than $50m total. Approx 16% issue.
Time will tell.
Conclusion. This is great entitlement offer if
A) You participate.
B) You got Sky shares relatively recently