Share Purchase plans

[NZSilver]

Hi there,

Just a quick question - I couldn't find it anywhere else but someone may be able to point me in the right direction.

When there are SPP on the ASX for a company you hold how does the scaling work?

ie if there was a sPP for $1 per share is a max application of $10000 with a minimum of $1000, with parcels of $2000, $5000, $8000 and $10000 how is it scaled if there is oversubscription? is there any rules around this. I e if someone chose $5000 allocation and another the $2000 allocation but each share holder was only equally enough for 1000 shares each ($1000 worth) would they receive an even amount or is it based on how many the subscribed for originally?

thanks in advance

[Harvey Specter]

Hi there,

Just a quick question - I couldn't find it anywhere else but someone may be able to point me in the right direction.

When there are SPP on the ASX for a company you hold how does the scaling work?

ie if there was a sPP for $1 per share is a max application of $10000 with a minimum of $1000, with parcels of $2000, $5000, $8000 and $10000 how is it scaled if there is oversubscription? is there any rules around this. I e if someone chose $5000 allocation and another the $2000 allocation but each share holder was only equally enough for 1000 shares each ($1000 worth) would they receive an even amount or is it based on how many the subscribed for originally?

thanks in advance

Dont know for the ASX, but for the NZX, it is determined by the company. Pretty sure I have seen pro-rata and a max amount (ie. everyone got all they wanted upto some amount which was less than the total you could apply for)

[777]

In the Australian cases I don't see that there would be an over subscription due to the maximum amounts shareholders can apply for. In fact I don't think they would expect all to be taken up so effectively an under subscription.

[catbert]

In the Australian cases I don't see that there would be an over subscription due to the maximum amounts shareholders can apply for. In fact I don't think they would expect all to be taken up so effectively an under subscription.

What? Over-subscriptions happen all the time. Check today's announcement from TRG for a good example - they decided to double the amount of funds they would accept, and it was still oversubscribed, with applicants only getting about 37% of the shares applied for.

[777]

What? Over-subscriptions happen all the time. Check today's announcement from TRG for a good example - they decided to double the amount of funds they would accept, and it was still oversubscribed, with applicants only getting about 37% of the shares applied for.

OK I accept that. Any of the SPP I have been involved with have not had a maximum $ amount. They have just accepted all that are applied for.