STR - Stride Property [ex DNZ Property]

[Jessie]

Priced range of 76-86 cents and underwritten. Some mickey mouse allocation method of 1/3rd firm and 2/3 contingent- full details not yet available. With trading on the unlisted at 42-45 cents prior to halt, the capital raising/IPO price is no bargin!

I don't think the unlisted share prices are comparable. The Herald article quotes 188m shares currently on issue but there are actually 470m I think. So it appears there will be some consolidation of shares (2 for 5?) prior to listing. This would imply a price for current shares of about 32 cents. Current asset backing is about 80 cents but that is irrelevant - I guess it require a big discount to make the offer attractive when compared with other property companies which also sell at large discounts to net asset value.

[fungus pudding]

I don't think the unlisted share prices are comparable. The Herald article quotes 188m shares currently on issue but there are actually 470m I think. So it appears there will be some consolidation of shares (2 for 5?) prior to listing. This would imply a price for current shares of about 32 cents. Current asset backing is about 80 cents but that is irrelevant - I guess it require a big discount to make the offer attractive when compared with other property companies which also sell at large discounts to net asset value.

In which case the fairest action for current shareholders would be to sell the buildings and wind the show up. Listed property shares sell at a discount to valuation - properties don't.

[Snapper]

In which case the fairest action for current shareholders would be to sell the buildings and wind the show up. Listed property shares sell at a discount to valuation - properties don't.

Inthe paper it said existing shareholders held 188.5 million shares which is exactly half of the 377 million share capital in the latest report. 2 for 1, I'd guess.

Fungus, agree with you - on that basis they should wind it up. No wonder the institutions were so enthusiastic about it. Unfortunately however, shareholders won't have much of a say in it, they'll just have to lie back and take it.

[fungus pudding]

Inthe paper it said existing shareholders held 188.5 million shares which is exactly half of the 377 million share capital in the latest report. 2 for 1, I'd guess.

Errrrrrr............ 1 for 2 I'd guess.

[Snapper]

Errrrrrr............ 1 for 2 I'd guess.

Yeah, got my one's and two's mixed up

[fungus pudding]

Yeah, got my one's and two's mixed up

I have emailed DNZ and asked them if this 1 for 2 for existing shareholders is what they intend. It will be interesting to see if and/or when I get a reply.

[fungus pudding]

I have emailed DNZ and asked them if this 1 for 2 for existing shareholders is what they intend. It will be interesting to see if and/or when I get a reply.

And the answer from them is ............'We are unable (?) to comment before the prospectus is issued. Which means they are able to comment but choose not to, which in turn means that you azre right. Existing shareholders are about to be shafted Royally.

[Jessie]

And the answer from them is ............'We are unable (?) to comment before the prospectus is issued. Which means they are able to comment but choose not to, which in turn means that you azre right. Existing shareholders are about to be shafted Royally.

Yes they are keeping very quiet about the details although obviously the Herald reported managed to get a glimpse of the prospectus. Unfortunately she didn't note the most important details of the offer though, at least for existing shareholders. We will all find out in a day or two I guess.

[Jessie]

In which case the fairest action for current shareholders would be to sell the buildings and wind the show up. Listed property shares sell at a discount to valuation - properties don't.

Actually the best action for shareholders of most property companies would be to wind them up as they are mostly selling at steep discounts.

[Omega]

Jessie, would be interested to know where the share consolditaion info source came from as this is news to me. I haven't seen any reports of this and there was no mention of this by the brokers when I enquired about purchasing some shares. Considering as I baulked at the price and advised my interest was nil at that price, one would have thought it was an important fact to highlight.