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Originally Posted by kiwikeith
Actually I think it is better explained if you bought a $1m house using $200k of your own savings and an $800k loan. On the one hand, you could say you have bought a house for $200k as that is all you are putting in. But the house has an enterprise value of $1m comprising equity of $200k and a bank loan of $800k. The important number from a valuation perspective is the $1m enterprise value. Similarly when buying a business, it is the enterprise value which is the most important valuation number - the division of that between equity and debt is secondary.
Yep, I understand now.
Thanks all.
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When you buy a company you buy it’s debt as well. So if a company cost $1m and had $500k of debt, you could think of it as the future cash flows of the company being worth $1.5m.
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Originally Posted by James108
When you buy a company you buy it’s debt as well. So if a company cost $1m and had $500k of debt, you could think of it as the future cash flows of the company being worth $1.5m.
Originally Posted by mwri
It’s more like adding the cost to the house. If you bought the house and it’s worth $1m but also has $200k debt then it really costs $1.2m as you’d also be owing that extra money on top. Cash gets subtracted
Thanks...I think.
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Can anyone do the maths and work out what the pro rata will possibly look like.
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Originally Posted by Toddy
Can anyone do the maths and work out what the pro rata will possibly look like.
If one is unsure about the pro rata number a specified amount of shares can be brought through your sharebroker from their allocation at no commission I have been told by sharebroker.
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Member
Originally Posted by Toddy
Can anyone do the maths and work out what the pro rata will possibly look like.
Not sure I have this right but Market Cap is 7,375.73m; raise is 850m - so 11.5%.
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Originally Posted by maclir
Not sure I have this right but Market Cap is 7,375.73m; raise is 850m - so 11.5%.
Page 22 of the presentation states that the equity raise will increase the total number of shares on issue by approximately 12.7%. So if you have 1,000 shares, you will need to acquire a further 127 shares to maintain your current effective ownership percentage.
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What will happen to its share prices after this capital raise?. How many times did they raise capial over the last couple of years?
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I would expect that the majority of the shareholders will take up the offer. Because this is very much a value add exercise. Not a stress debt restructure exercise like RYM etc.
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IFT price drop of 4%, after announcing a 12.7% share count dilution / capital raise.
Market doesn't hate this deal.
Last edited by LaserEyeKiwi; 08-06-2023 at 10:36 AM.
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