Auckland International Airport Limited (AIA)

[Lewylewylewy]

The company has to make the spp worthwhile, otherwise why would anyone buy.

However, because this is the rate you can buy at, it's profitable to sell at any price above that. Therefore the price will go down closer to that level.

[macduffy]

The company has to make the spp worthwhile, otherwise why would anyone buy.

However, because this is the rate you can buy at, it's profitable to sell at any price above that. Therefore the price will go down closer to that level.

If the issue is oversubscribed there may be only a limited number available to buy at the SPP price. I agree that the price is liable to drift down.However, there are two questions to ponder. How much is the SP likely to reduce by? Can one be assured of the SPP "replacing" any shares sold now?

[robinnz]

I'm trying to work out the implications of their scaling if the offer is oversubscribed. For example, if say I have 5000 shares and apply for another 5000 but it is oversubscribed by say 30% what would be my allocation? The offer document is vague. Does anyone out there know the formula they will use?
Has their wording been used in other share offers?

[macduffy]

The usual "thing" is to leave management - and presumably issue managers and underwriters - discretion in how this is handled. Normally, the bigger one's holding, the better the chance of good treatment in the event of over-subscription.

Incidentally, note that applications are for dollar amounts, not number of shares.

[limmy]

Their email to entitled shareholders has this sentence:-

If scaling under the SPP is required, it will be done so with reference to your existing holdings at the record date, being 3 April 2020.
Hope this helps,
limmy

[moimoi]

Their email to entitled shareholders has this sentence:-

If scaling under the SPP is required, it will be done so with reference to your existing holdings at the record date, being 3 April 2020.
Hope this helps,
limmy

Many will have read this but its not necessarily clear what this actually means?

AFAIK

Assuming Robinnz has 5000 shares there are a number of possibilities...


- Robinnz can apply for 5000, and receive another 5000 (no scaling)

or

- Robinnz can apply for 5000, and receive another 3500 (assuming 30% scaling on the original holding)

and

- Robinnz could apply for 50,000, and receive another 3500 (assuming 30% scaling on the original amount)

GLTA

[Joshuatree]

Be lucky to get 20% of ones application imo, Thats my guess 20% max for most.

[ratkin]

Anyon else not had their offer document yet?

[limmy]

Ratkin, it came as an email. You can otherwise call Link to get your entitlement number.

[JAYAY]

Be lucky to get 20% of ones application imo, Thats my guess 20% max for most.

The question is - 20% of what?
IE If I own 5000 shares and I apply for $20,000 worth, what would the formula be if we were to be allocated 20%?
Bearing in mind that it seems that the number of shares owned and the amount applied for are both factors in the equation.

I actually emailed Link the other day with this question. Still waiting for a reply.