MEL - Meridian Energy

[RTM]

I'm not sure that the MRP sweetener is really significant. With my patriotic hat on I got $15k (6000) MRP. For my trouble I will get 200 more shares after two years. This really isn't enough to influence decisions for me one way or another. 200 @ $2.20 (say) = $440 = 7 cents per share. Maybe I'm looking at this incorrectly ? But in any case.....I guess the damage is done...so I am holding.

One of the issues for MRP is the IPO sweetener. Investors who got in after IPO will not have any benefit. This created the situation of over-inflated IPO subscription and subdued demand afterwards I think, which probably explains how it has performed so far. This time with Meridian, do the investors buy after IPO still get the "pay later" benefit? Is there any other sweetener that will differentiate before and after IPO purchases?

[robbo24]

I'm not sure that the MRP sweetener is really significant. With my patriotic hat on I got $15k (6000) MRP. For my trouble I will get 200 more shares after two years. This really isn't enough to influence decisions for me one way or another. 200 @ $2.20 (say) = $440 = 7 cents per share. Maybe I'm looking at this incorrectly ? But in any case.....I guess the damage is done...so I am holding.

I think it's actually a 40:1 share bonus, right? So a 4% bonus issue to 24 month holders. Which means you get 150 bonus shares.

At the end of the day, IPO buyers are still getting their pre-IPO scheduled dividend yield (and indications it will be upgraded further).

What's to complain about?

[RTM]

I think it's actually a 40:1 share bonus, right? So a 4% bonus issue to 24 month holders. Which means you get 150 bonus shares.

At the end of the day, IPO buyers are still getting their pre-IPO scheduled dividend yield (and indications it will be upgraded further).

What's to complain about?

"New Zealand Applicants who continue to hold their Shares in the same registered name for a
period of 24 months will be entitled to Loyalty Bonus Shares based upon the ratio of 1 for 25, up
to a maximum number of 200 Loyalty Bonus Shares for each New Zealand Applicant . The Loyalty
Bonus Shares have the effect of providing New Zealand Applicants who retain their Shares for 24
months with additional Shares for no further cash investment (if certain conditions are met)."

Conditions above. Not complaining. Just not sure that this meagre inducement really inflated the IPO at all.

[CJ]

Not complaining. Just not sure that this meagre inducement really inflated the IPO at all.

I think it will have less effect that different final instalment prices, not just becaue the amount could be bigger (20c/1.80 = 11% compared to 4%) but it is more explicit since cash will need to be outlaid as apposed to just receiving it.

[robbo24]

"New Zealand Applicants who continue to hold their Shares in the same registered name for a
period of 24 months will be entitled to Loyalty Bonus Shares based upon the ratio of 1 for 25, up
to a maximum number of 200 Loyalty Bonus Shares for each New Zealand Applicant . The Loyalty
Bonus Shares have the effect of providing New Zealand Applicants who retain their Shares for 24
months with additional Shares for no further cash investment (if certain conditions are met)."

Conditions above. Not complaining. Just not sure that this meagre inducement really inflated the IPO at all.

1 for 25... Ah yes that's right, or 4 for 100, or 4%...