IFT - Infratil

[Sideshow Bob]

quote:Originally posted by Sideshow Bob

$1.35 for B warrants - getting keener to top up.....

Even better at $1.28.....

[PointyHat]

Thanks Sideshow, I thought I missed the boat on these years back and have followed IFT since. I am in IFTHA's since taking out money from the market and consolidating recently, but never found the WB's, and I think they may be a good entry at some later time, they are now on my watch list. Thanks for mentioning these.

[Steve]

Been a IFT shareholder from the start, receiving the odd bond & warrant allocation over the years. I have just increased my warrants holding thru the shareholder plan, which was nice of them.

These Share Purchase Plans have become very popular in recent times...

[Caesius]

Even better at $1.28.....

Or at 1.20...

[QOH]

Can anyone understand the details of today's rights issue.? It says the exercise price of the B and C warrants will be reduced accordingly. Unless the exercise price of the B warrants is hugely reduced, won't they be almost worthless?
Wondering if I made a big mistake topping up my B's.

[Rif-Raf]

Key issue terms are as follows:
-1:5 renounceable rights issue all shareholders. The exercise price for each
series of warrants (IFTWB & IFTWC) will adjust downwards in accordance with
the formula in the warrant terms.


Agree, it's a bit unclear. One would assume that the terms are all the same, and they mean for the B holders it is a case of pay $1 now and $1 later (not $1.75) which is 75c "downwards"

[Snow Leopard]

What it means is actually what it says.
Because they are offering some new shares on the cheap (assuming that the recent slide does not continue too far ) which sort of dilutes your existing shares (and thus also warrants) value the exercise price of the warrant will be reduced to compensate for that. If you look at the Warrant Investment Statement you will find the mentioned formula.

These numbers are illustrative purposes only but fr'instance the B exercise price of $1.75 may become $1.68.
The exercise date will remain the same.

When they doubled the number of shares they halved the exercise price, thing of it has a similar event.

Hope that helps .

[kissssik]

So can anyone tell me the impact on the heads price over the next wee while, assuming the inetrnational markets play the game........also have a read of the CEO's address at the AGM...a smart guy most yawn when the CEO gets up but most want more after this guy.....he claerly thinks the global markets will sh*t themselves therefore present IFT with the oppotunity to buy up large...I agree....I'm sticking my neck out and say have your money of the table by mis September this year ASX will rally to 6600 and then good by.......I'm not a dooms dayer and hate dickheads who continually coime up with the market going to crash....something I've listen to for years, I base my view on a few experts around me, charting fundamentals and my old mate GANN time/price...So there you go

[D_Pick]

Will this $2 rights issue pull the head shares down further? I think so.

If management feel they need to set the price at a relatively low $2 then I assume that management feel that the current head shares are overpriced and that the market isn't factoring in enough risk? Selling equity cheaply isn't in anyones best interests.

I would have thought IFT could have raised this amount by issuing less new shares at a higher price, like somewhere around the $2.5-$2.80 mark.

[Rif-Raf]

Will this $2 rights issue pull the head shares down further? I think so.

If management feel they need to set the price at a relatively low $2 then I assume that management feel that the current head shares are overpriced and that the market isn't factoring in enough risk? Selling equity cheaply isn't in anyones best interests.

I would have thought IFT could have raised this amount by issuing less new shares at a higher price, like somewhere around the $2.5-$2.80 mark.

Not at all, this is a rights issue not a placement. It always makes sense to offer them at a discount to ensure that their is ample incentive to take up the entitlement. as long as veryone has the opportunity to participate then no one can complain about dilution .
In fact a big issue is companies making rights issues at small discounts to market and not having enough head room for price movements before the issues close.