IFT - Infratil

[Toddy]

Can anyone do the maths and work out what the pro rata will possibly look like.

[kiwikeith]

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

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.

[kiora]

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.

[RTM]

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.

[maclir]

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%.

[Southern Lad]

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.

[Valuegrowth]

What will happen to its share prices after this capital raise?. How many times did they raise capial over the last couple of years?

[Toddy]

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.

[maclir]

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.

Thanks for that.

[kiora]

Interesting choice of underwriter's
New "partner" in the making?
https://www.afr.com/street-talk/ubs-...0230607-p5delj
https://barrenjoey.com/7839-2/