ERD - ERoad. (Transport sector technology)

[BlackPeter]

Well one broker seems keen.?

Dear Client,

You are receiving this email as you are currently on our Investment Opportunities list.

E-Road (ERD) has announced that it is making an offer of shares at a discounted price of $5.58. This represents a 9% discount to the last closing price.

This is an extremely fast issue, with bids due no later than 3pm today. Bids cannot be accepted after this time.

We anticipate that there will be significant scaling with this issue, and it is possible that allocations will be minimal as priority will be given to existing shareholders with a shareholding greater than 32,500 shares.

Mmh ... I don't see a recommendation coming with this announcement ; Just describing the process (as for any other placements).

But yes, I do remember him talking about ERD already a long time ago (and I think he is holding). I guess this is one of the stocks where he and I disagree on - but then, he always emphasized it is speculative anyway. I do agree with that assessment.

[Leftfield]

…but earnings accretive....Revenues about 50m and Ebitda about 16m

Mmm we'll see.......announcement talks less about $ and more about "driving synergies....." and FY23 is a long way away.

• Acquisition is accretive from an earnings basis in FY23, following growth investment
  in FY22 to drive synergies

[winner69]

Mmm we'll see.......announcement talks less about $ and more about "driving synergies....." and FY23 is a long way away.

• Acquisition is accretive from an earnings basis in FY23, following growth investment
  in FY22 to drive synergies
  

ERD have always concentrated more on operational numbers than dollars

A case of if the numbers get big enough profits will flow big time.

[nztx]

Placement via Sharesies scaled back to roughly 15% of what was applied for

must have been a bit of interest out there in well discounted Placement

[Beat the Bank]

I am confused. Maybe this should be in newbies corner but how come Sharsies got some and others didn't?

This from Chris Lee

Unfortunately, E-Road has prioritised all allocations to existing investors who hold more than 32,500 shares and has decided not to allocate any shares to those who own fewer than 32,500 shares.
We are disappointed with E-Road’s decision and acknowledge the frustration that this causes
I applied as a zero holder hovering in the wings and saw an opportunity to buy at discount. I know these issues are often scaled back but to zero seems disrespectful to those of us who did some work on this. There is the option of buying on market at full price to participate but no guarantee you would get enough warrant it. It seems like another gamble.

Why allocate the new shares to existing large holders when they are eligible for the upcoming placement anyway?
And I heard on RNZ midday news that there is an allocation to smaller shareholders but cannot find any further info on this.
Frustrating process and clear as mud to me anyway

Anyone got a better grip on this?

[BlackPeter]

I am confused. Maybe this should be in newbies corner but how come Sharsies got some and others didn't?

This from Chris Lee

Unfortunately, E-Road has prioritised all allocations to existing investors who hold more than 32,500 shares and has decided not to allocate any shares to those who own fewer than 32,500 shares.
We are disappointed with E-Road’s decision and acknowledge the frustration that this causes
I applied as a zero holder hovering in the wings and saw an opportunity to buy at discount. I know these issues are often scaled back but to zero seems disrespectful to those of us who did some work on this. There is the option of buying on market at full price to participate but no guarantee you would get enough warrant it. It seems like another gamble.

Why allocate the new shares to existing large holders when they are eligible for the upcoming placement anyway?
And I heard on RNZ midday news that there is an allocation to smaller shareholders but cannot find any further info on this.
Frustrating process and clear as mud to me anyway

Anyone got a better grip on this?

Sharesies is for Eroad just one holder, holding the shares for all sharesies participants. This makes them a big holder (i.e. greater than 32500 shares). I suppose this is the reason they got an allocation from ERD, and they obviously could split their allocation as they please.

For ERD it is just the big shareholder sharesies getting its fair share :

[nztx]

A bit of support from the punters for ERD & what they're doing ..

[Beat the Bank]

Sharesies is for Eroad just one holder, holding the shares for all sharesies participants. This makes them a big holder (i.e. greater than 32500 shares). I suppose this is the reason they got an allocation from ERD, and they obviously could split their allocation as they please.

For ERD it is just the big shareholder sharesies getting its fair share :

That makes sense. Thanks Black Peter.

Maybe it is worth a Sharsies account for issues such as this as brokerage can be a killer when you only get a fraction of the parcel you requested. And then another brokerage fee if you want to top up on market.

Their decision to reject offers from non holders has been food for the share price so far with new buyers having a second attempt as a new holder. It will be interesting if there is a sell down when the new shares are issued.
Moving on - I picked up Turners at $4.11 and have made a nice gain with it closing at $4.31 today.

[Charlie]

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[Charlie]

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