FBU - Fletcher Building

[Balance]

What percentage of fbu shareholders are retail investors though (i dont know tge answer) ... And I imagine not all will take the offer up.

Pro-rata issue so that means 1/3 retail investors.

[Kay]

Pro-rata issue so that means 1/3 retail investors.

Pardon my wine ingestion...so your second class comment relates to the delayed issue of shares?

[Balance]

Pardon my wine ingestion...so your second class comment relates to the delayed issue of shares?

Yes - the institutions will get their $4.80 shares first and can sell to lock in any gains if they so choose.

Be interesting to see how this plays out - will many retail investors sell shares to pick up their entitlements or are they content to take their chances with the auction for shares not taken up.

[Baa_Baa]

Just face it, this is a big money game, always has been, probably always will be. The minors are insignificant minnows, you'll all be subjected to being second class citizens and the treatment that goes with it. Screw equal shareholder opportunity, it's a pipe dream, a fallacy, improbable and not worth worrying about.

To get with the big game, which is whether your holding or entry is at the lowest price possible, you'll either sell out, top up, or buy in while the company prostitutes itself for capital raising, some of that opportunity will come your way albeit a small percentage in the scheme of things. The situation is fairly obvious, you just have to do what you think is the right thing for you to do. Make a decision, follow the big money into the bottom or whine about the process and being hard done by as a minnow.

Follow the money. Best example on the NZX right now as far as I can see. The FMA and NZX regulation stuff is a sideshow, it will unfold way after the opportunity for shareholders or wannabe shareholders, to make some decisions, right now.

[Kay]

Yes - the institutions will get their $4.80 shares first and can sell to lock in any gains if they so choose.

Be interesting to see how this plays out - will many retail investors sell shares to pick up their entitlements or are they content to take their chances with the auction for shares not taken up.

Yeah i guess retail investors can subscribe and immediately dump their 1/4.4 on market open to willing buyers... Happy to not be involved

[minimoke]

Yeah i guess retail investors can subscribe and immediately dump their 1/4.4 on market open to willing buyers...

Loosing tax along the way. Better have a good opening SP

[Balance]

Yeah i guess retail investors can subscribe and immediately dump their 1/4.4 on market open to willing buyers... Happy to not be involved

Institutions operate always with cash as part of their portfolios - so they are in good position to partake in capital raisings.

Retail investors, especially those who invest for income/dividends, tend to have to sell shares to partake.

So many will sell existing shares at above $4.80 in this case to pick up the 'new' shares - and they get picked off by the institutions who can sell first and buy off al lower prices from them.

[JeremyALD]

Anyone planning on picking up some today?

[Scrunch]

Aren't the shares trading ex rights when trading resumes. A retail shareholder can simply sell the number of existing shares equivalent to the number of rights they receive. This money is then put in the bank for three weeks and part of it is used to buy the rights at $4.80. It's a slightly better cashflow than the "first class" institutions. It may even be more tax favourable.

[Balance]

https://www.nzx.com/announcements/317011

2.2m shortfall cleared at $6.15.