AIR - Air NZ.

[stoploss]

2 for 1 at $53c gives an average weighted sp of $1.09 based on today's close?

Lets say they closed at $ 1.38
Assume your shareholding is 10,000 so $ 13,800 value of investment .
Entitlement to 20,000 shares @ .53 $ 10,600
So you have 30,000 shares for $ 24,400 invested , Ave price would be $ .8133

[Beagle]

4 years is a long time in the airline industry!

So WTF is going to buy the shares?

No one in their right mind lol

Key Risks - 7 pages of them in the presentation materials and they specially numbered the pages to help avoid any confusion as to the extent of them

Anyone spotted who's underwriting this capital raise ?

[winner69]

Presentation says -

Shareholders who do not acquire any New Shares in the Rights Offer (or the shortfall bookbuild) will be diluted by 67%


Suppose at the end of the day dilution doesn't mean very much at the end of the day for many shareholders

[Baa_Baa]

My prediction 2 weeks ago vs reality today of 2:1 at 53 cents.

Not that far off.

Brilliant call, well done. Terrible outcome for shareholders, especially the noobs, savaged their capital, being diluted to hell or having to stump up more capital for an extremely uncertain future, especially short term next 2-3 years.

We'll be watching for the SP fall back to the rights issue price and whether it overshoots down from there, before taking a long position. Would prefer a SP in the .20 - .30 entry than risking a .50 position. Might happen.

[JohnnyTheHorse]

If you are short something you don't own it so you are not going to get the rights to take up the shares.
Just as if you are short , you don't get the dividend if it pays one -the owner of the shares gets that.

The person you borrowed the shares off is entitled to rights or dividend. So you must pay them the dividend amount or return extra shares they are entitled to in the rights issue.

[Beagle]

Executive summary, bottom of page 7 Extract - Investors are strongly cautioned to not place undue reliance on these targeted financial objectives, particularly in light of the ever-changing Covid-19 situation, the current economic climate and the significant volatility, uncertainty and disruption caused by the pandemic, as well as the current conflict in Ukraine and its impact on global fuel prices. Due to the uncertainties going forward created by these factors, these targeted financial objectives should only be regarded as indicative of one possible outcome

Huge caveat for all to see in the presentation. In other words their targeted financial objectives are their best case scenario of many possible scenario's some of which are abhorrently worse and may involve another capital raise in due course of a similar magnitude. Talk about extreme risk !!

Once the dust settles from all this it could be worth a small high risk punt at 25-30 cents.

[Rawz]

Brilliant call, well done. Terrible outcome for shareholders, especially the noobs, savaged their capital, being diluted to hell or having to stump up more capital for an extremely uncertain future, especially short term next 2-3 years.

We'll be watching for the SP fall back to the rights issue price and whether it overshoots down from there, before taking a long position. Would prefer a SP in the .20 - .30 entry than risking a .50 position. Might happen.

The noobs, aka us tax payers and then followed by the sharesies army. Sad!

Who knows, maybe the sharesies troops keep the SP up, they have done an amazing job of it so far

[winner69]

So my $1.40 shares aren’t really worth that any more? ….asking for a friend

[pierre]

Anyone spotted who's underwriting this capital raise ?

If its in the presentation its very well hidden. I've scanned through the document but can't see a name anywhere. That doesn't mean there isn't a name though - my eyesight is not that great when it comes to small print.

Is there a possibility it might be G. Robertson though?

[Nurg]

Anyone spotted who's underwriting this capital raise ?

Citigroup Global Markets and UBS New Zealand