Auckland International Airport Limited (AIA)

[limmy]

I’m pretty sure that everyone (well almost everyone) got their fair share and nobody should really be complaining they were short changed.

As you pointed out on the day it was announced the SPP was just under 18% of the total raise ...and it appears that retail investors held about that %.

I’m not complaining ...even accepting the fact that refunds not immediate.

I fully agree.

[macduffy]

I agree, winner. That's the system used today, for better or worse.

[dibble]

I agree, winner. That's the system used today, for better or worse.

But there is a better way, that's my truck, we dont need "worse". BALANCE, I get your logic but you and StrangerDanger have chosen extreme examples that can very easily be resolved with an IF statement or two in Excel. Proviso being that the parameters are clear to all.

AIA actively chose unhelpful wording, "pro-rata" is unequivocal, "with reference to" is not, it makes you question why they dont say Pro Rata. They did this when obviously there was no longer an existential threat (they had their billion) and knowing there were better, proven ways of doing it, so they actively chose not to. A 1:3 rights issue, with an option to apply for more and taking payment just for allocated shares would have achieved about the same but without any mystery and surely, if you own more than $50k worth, fairer?? Yes, like the VGL offer.

Perhaps i've missed something. If not and VGL is the gold standard, and there is no existential threat (when perhaps all bets are off) then why not use it?
Apologies for banging on but SPPs may come thick and fast so good to get the topic out of the way.
Anyway I'd better shut up.

[Bjauck]

You have hit the nail on the head.

It used to be that anyone with shares in a company doing SPP automatically gets a minimum of say, $5,000 and then, pro-rata for the balance based on the number of shares held. So someone with $100 shares gets the first $5,000 worth - same as someone with $100,000 shares.

Brokers used to ring up their clients (like me) with opportunities like these and it was fantastic! Buy $100 of shares in several accounts and get several $5000 of discounted shares in a SPP. Easy money!

Companies wised up to the practice (after numerous complaints from existing and/or bigger shareholders) so the SPP structure used these days now reflects shareholding levels, and at announcements - rather than an ex-date in the future.

Yep investing on the NZ share market was akin to a fight at the O.K. Corral. Probably contributed to why NZ individuals stuck to real estate investing and the nz share market being tiny?

Thesedays the AIA is desperate to survive hence a decently organised rights issue was replaced by the SPP & insto placement. Good luck to holders.

FWIW, Long term I think Aia, minus some of its more ambitious pre-Covid capital programs, will be a bottom drawer holding. There could be several years of adjusting to a post-Covid way of travelling.

Disc: former shareholder.

[limmy]

AIA will be around a lot longer than Covid-19 will be.
Mankind won't be giving up air travel indefinitely.

All the institutions know the above and hence their book building was fully subscribed. Agree ?
I'm just glad that us ordinary shareholders were given our SPP.

[Bjauck]

AIA will be around a lot longer than Covid-19 will be.
Mankind won't be giving up air travel indefinitely.

All the institutions know the above and hence their book building was fully subscribed. Agree ?
I'm just glad that us ordinary shareholders were given our SPP.

Not being either a virus or investment expert, I am not sure about your expecting AIA to be around for longer than Covid-19!

I did not mean to indicate that I thought air travel would cease....just that the Covid-era may see a change perhaps for some years to its volume and profitability. A slimmer AIA with less grandiose expansion plans may well prosper. As you say the capital raising was very well supported and I may regret not having kept a holding.

[spmcg]

I'd be interested in knowing how many people actually knew this:

In accordance with the Offer Document, all refunds will be made without interest. Any amount lesser than $5 due to scaling or
rounding will be retained by Auckland Airport.


Wonder how much this made for AIA...

[Cyclical]

I'd be interested in knowing how many people actually knew this:

In accordance with the Offer Document, all refunds will be made without interest. Any amount lesser than $5 due to scaling or
rounding will be retained by Auckland Airport.


Wonder how much this made for AIA...

Cheeky buggers. It'll be more than a couple of lattes, that's for sure.

[peat]

Cheeky buggers. It'll be more than a couple of lattes, that's for sure.

depends whether you are buying them at the airport or not!

[tango]

I'd be interested in knowing how many people actually knew this:

In accordance with the Offer Document, all refunds will be made without interest. Any amount lesser than $5 due to scaling or
rounding will be retained by Auckland Airport.


Wonder how much this made for AIA...

I saw that in my allocation letter.

The odds that someone would apply for and receive the exact amount they apply for with less than $5 change is small but still it seems very wrong not to refund it.