PEB - Pacific Edge Ltd

[pierre]

Having a quick skim over it all, looks like Sharsies will allow for both the placement and the retail. Think I'll split between the both of them to see how the ASX open pans out.

The retail offer opens on September 28 and closes October 13 so there's plenty of time to monitor the SP before deciding what to do.

[Maxtrade]

I wonder how many of us read the writing on the wall and sold off a portion of our PEB holdings when the leaked CR was announced. Would have made most sense to sell off the majority @ 1.45+ and buy back in on the lower CR @1.35 today.

Surprised we didn't see more of a sell off prior to ASX listing knowing the CR was likely in the works.

Bit disappointing how PEB management played dumb and implied they weren't doing a CR, then less than a week later sure enough there it is. Those more experienced likely knew it was coming anyway, sold off prior and are bidding today for the CR at the lower rate $1.35 (Jarden).

Those that bid through other brokers lower ($1.25, $1.30) will likely miss out as it is very likely will be massively oversubscribed. Was just speaking with couple of brokers who have already indicated demand is already showing high levels at $1.35.

Which is good for existing shareholders that didn't sell prior to today, as if oversubscribed at $1.35 then SP may likely bounce back up to 1.5-1.6 very quickly to follow with ASX volumes.

Not to mention the positivities that come with why and what PEB is doing with this CR. All continued good news and growth looking more and more positive.

[Beat the Bank]

From Sharechat- the retail offer allows

up to NZ$50,000 of new shares under the Retail Offer. Shares will be offered at the lower of the price paid for shares under the placement and the volume weighted average price of Pacific Edge's shares on the NZX over the 5-day trading period before the closing date of the retail offer (being 13 October 2021,

So the retail offer gives extra security to existing shareholders if the price drops below the offer price. And up to $50k can be applied for but in my experience to date, scaling pulls that way back and ties your money up for a while.

[pierre]

I wonder how many of us read the writing on the wall and sold off a portion of our PEB holdings when the leaked CR was announced. Would have made most sense to sell off the majority @ 1.45+ and buy back in on the lower CR @1.35 today.

Scaling is very likely to occur so if you sold most of your shares prior to the announcement the chance of topping up at the lower price would have been minimal. We will have to wait and see what the Offer price is and how the market responds before knowing what is the best strategy.

I think this CR announcement is great news and is a giant leap into a hugely positive future for the company. I have substantial holdings of PEB held in two portfolios and will be applying for the maximum allocation in each of them.

[iamaskier]

I wonder how many of us read the writing on the wall and sold off a portion of our PEB holdings when the leaked CR was announced. Would have made most sense to sell off the majority @ 1.45+ and buy back in on the lower CR @1.35 today.

It's scaled though right, so yea you'd get an (unknown) portion back at an assumed cheaper price (unknown at the time) but you'd have to buy the rest back at a market price (unknown) if you wanted to get to level you held. I'm sure people have but it doesn't seem straight forward at all...

[Maxtrade]

Thanks Pierre,

Would it be wiser to buy more shares with a bid during todays trading halt in the capital raise share placement to secure more holdings. Or to wait and buy them through the retail offer, (where it would then be the lower of either the placement price allocation (likely to be $1.35) or the VWAP 5 day prior share price).

Are there any disadvantages to waiting to buy them through the retail offer (other than being limited to $50,000 max buy).

If waited to buy through the share offer is the risk that the retail offer could be so over subscribed that the percentage of shares you would receive from your offer could be greatly less?

Trying to decide weather better to just buy more shares today during the share placement through brokers. Or to wait and make an offer during the retail offer period.

Those with more experience with Cap Raises might be able to please help let us know a bit more on the pro's and con's of each and what's the better approach to increase PEB shares in our portfolios while obviously trying to take advantage of securing them at the best price.

thanks and much appreciated

[Minerbarejet]

There is a keen fan in the PEB depth.

Bid 5000@1.80

Disc: Not me

[LoungeLizzard]

Yeah, I didn't consider selling down after the CR gaff, because as Pierre mentioned scaling is more than often the case.

I'm thinking that the market is going to react well to the news and I don't see the price slipping back and creating a buying opportunity. More likely that SP will go up as new investors are drawn in. So unless you don't have much of a holding and won't get much through the scaled retail placement (or you want to spend more than the 50k limit) it seems wiser to me to buy them through the placement, although it may well be oversubscribed. Thoughts?

[pierre]

Hi Maxtrade

Well, the answer is.. I don't know.

Jarden are only accepting bids in the placement at $1.35 - though the actual issue price may be lower. It all depends on demand. You wont know the actual issue price or the quantity you receive until the placement is finalised.

The placement price then sets the benchmark for the retail offer:

"..up to NZ$50,000 of new shares under the Retail Offer. Shares will be offered at the lower of the price paid for shares under the placement and the volume weighted average price of Pacific Edge's shares on the NZX over the 5-day trading period before the closing date of the retail offer (being 13 October 2021."

So, if the market price drops below the placement price you will buy cheaper in the retail offer - but once again face the risk of scaling. You also need to remember that the ASX listing might create additional demand for PEB and possibly elevate the SP.

There is no certain answer so I am going to hedge my bets by participating in both offers.- but this is not advice that you should do the same.

[Cyclical]

I wonder how many of us read the writing on the wall and sold off a portion of our PEB holdings when the leaked CR was announced. Would have made most sense to sell off the majority @ 1.45+ and buy back in on the lower CR @1.35 today.

One thing to be mindful of is the tax implications of course... Depending on your situation, let's say those ones you sold at 1.45 you were lucky enough to buy earlier this year at $1 and your marginal tax rate is 33%, well Cindy and Grant would like to take about 15 cents off you for each of those you sold, so your perceived 10c ps profit on your little trade is really a 5c ps loss. I can't speak for anyone else, but if I hadn't sold anything since March last year, rather than mucking about chasing little ups and downs here and there, I'd be a lot better off than I am right now, and that's before even taking tax into consideration ;-)