Companies on watchlist for capital raising/SPP

[skyQuake]

Re: Companies on watchlist for capital raising /SPP

Sorry to hijack the thread...

I've been reading up on threads about IB an SPPs, I couldn't find the answer to my question in threads then I saw this...

Wondering if you can answer: With IB can you pay $6 brokerage to buy in just buy a token amount of units say $10 worth (or 1 unit), and then somehow notify them to participate in future SPPs as custodian on your behalf?

Are you able to shed some more light on this as interested in using this as a strategy to get on the register of potential capital raisings..

Thanks!

Short answer, yes. Just tell IB to participate in it for you and off they go. However due to some aus restrictions, you may not be able to participate in some SPPs

Also, LNC doing cap raising tomorrow.

 

[Rancey]

Re: Companies on watchlist for capital raising /SPP

Correct. T+3 settlement rules apply.

If virgin blue trades today, you can get in on the placement. (unfortunately it wont)

Is there any difference between an offer that states the time you have to be registered by and an offer that doesn't? In other words, if the offer says you have to be registered on x by 7:00pm, is that different to if the offer just says you have to be registered on x?

I ask because I am wondering if it is possible for a company to say you have to be registered on x and actually use an early time (say 7:00am), which could effectively make it T+4, or if there is just no difference.

 

[skyQuake]

Re: Companies on watchlist for capital raising /SPP

Is there any difference between an offer that states the time you have to be registered by and an offer that doesn't? In other words, if the offer says you have to be registered on x by 7:00pm, is that different to if the offer just says you have to be registered on x?

I ask because I am wondering if it is possible for a company to say you have to be registered on x and actually use an early time (say 7:00am), which could effectively make it T+4, or if there is just no difference.

That 7pm rule is there for brokers who cross trades after 4pm. Its almost always 7pm, and probably just to clarify for people that you gotta own the shares by end of day record date -3.
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Also, SAY doing SPP. However it looks mighty thin, selling $15k worth of shares can crack it wide open.

 

[stellegen]

Re: Companies on watchlist for capital raising /SPP

That 7pm rule is there for brokers who cross trades after 4pm. Its almost always 7pm, and probably just to clarify for people that you gotta own the shares by end of day record date -3.
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Also, SAY doing SPP. However it looks mighty thin, selling $15k worth of shares can crack it wide open.

Can you explain your comment about SAY please?

 

[skyQuake]

Re: Companies on watchlist for capital raising /SPP

Can you explain your comment about SAY please?

Average daily volume is 30k. The spp would give EACH player up to 200k shares.

Looking at mkt depth there is a total of 400k shares on the bid in total...

 

[Rancey]

Re: Companies on watchlist for capital raising /SPP

That 7pm rule is there for brokers who cross trades after 4pm. Its almost always 7pm, and probably just to clarify for people that you gotta own the shares by end of day record date -3.
------------------------------------
Also, SAY doing SPP. However it looks mighty thin, selling $15k worth of shares can crack it wide open.

Thanks.

Like you say, SAY is very thin...not enough depth to warrant jumping on board imo.

 

[fureien]

News release today after trading halt for AZZ (antares energy)

Someone clarify this but supposedly there is a further capital raising for up to $15000 for each eligible shareholder

Additionally Patersons Securities Limited will act as lead manager to a Share Purchase Plan
(SPP). Under the SPP all eligible shareholders will have the opportunity to subscribe for up to
$15,000 worth of fully paid ordinary shares. New shares under the SPP will be offered at the
same price as the Placement, being 25 cents per share, a 18.5% discount to the volume
weighted average share price for the 5 trading days prior to 5 August 2009. No brokerage,
commission or other transaction costs apply to applicants for the shares issued under the SPP.
The SPP is proposed to be capped at 8,000,000 shares to raise up to $2,000,000.
The offer is open to all holders of fully paid ordinary shares registered on the Company’s share
register at the record date of 20 August 2009, with a registered address in Australia and New
Zealand.
The board has taken this step to provide an opportunity for shareholders to increase their
participation in the future growth of the Company on similar terms to those of the Placement.
Monies raised through the Placement and SPP will be used to purchase additional Eagle Ford
shale acreage and to augment working capital.

by eligible do they mean anyone registered and settled by 20th august?
they dont mention whether its a 2 for 1 or whatever entitlement, just a max of $15k. if any eligible shareholder can choose to get $15k, then cant i just buy like $100 of share today at $0.32 then take up the offer of $15k worth of shares at 25 cents?
i posted this in the azz thread too.

also, at the moment the market is rallying cuase of the other good news as well as probably from buying pressure of ppl who want to get in early to be entitled. since the spp is at 25 cents, ive often seen the market price drop to the offer price. i just want someone to clarify this, but this usually happens after the entitlement period ends right? sorry ive confused myself a bit.

the reason why i ask is because i see a potential opportunity to take profits. and the buy back in when it drops a bit to be entitled for more
and then probably sell on market, which should be higher. there would be no point in me taking up $15k of shares if the market price is close to 25 cents too (ok there is, but its alot of effort for little gain....you have to wait until 18th september)

 

[skyQuake]

Yup agree, but there is potential to scale back if too many people jump on board.

You have untill Mon 17th Aug to buy

EDIT: It also means a total of 133 people will get their full allocation... Or a heap of scaleback.

 

[fureien]

would it be first in best dressed. cause they havent even given instructions on how to do so

 

[skc]

would it be first in best dressed. cause they havent even given instructions on how to do so

It won't be first in best dressed. It may be related to your original holding, however. The company may also increase the total maximum amount if the response is too strong.

 

[gooner]

Its possible that GMG could have one

I bought some GMG and MIG shares after reading this thread - about $1,000 worth of each.

Looks as though GMG might pay off - assuming they don't do a renounceable rights issue.

MIG - we shall see?

 

[airpoe]

be very careful of small miners raising capital, just see crj!!

down 70% since spp

 

[benn]

Some company called AZZ is raising capital. and still have a couple of days to get on board before record date.


not sure bout liquidity with it tho. I got me small parcel today. See what happens....

 

[benn]

Some company called AZZ is raising capital. and still have a couple of days to get on board before record date.


not sure bout liquidity with it tho. I got me small parcel today. See what happens....

Ah sorry bout that, someone has already mentioned AZZ. doh.

 

[asel]

I read this thread with interest. I am quite aware that the Australian system of capital raising is akin to a funny joke and is free for all of us to exploit at will, although I am also wary that we may be approaching the tail end of this strategy. I still remember looking at my Suncorp $4.50 application form and imagining how far below $4.50 Suncorp will drop after the share placement, unfortunately applying for only $800 worth. As I await my VBA and MLE to start trading I wonder how long this strategy will be successful. Once mainstream media publicize the fact, it's too late.


PS
Bought $500 of AZZ yesterday.

 

[SilverRanger]

I think it is quite publicized already
http://www.businessday.com.au/business/how-to-make-75000-in-three-months-20090519-bdfd.html

 

[Buckeroo]

I think it is quite publicized already
http://www.businessday.com.au/business/how-to-make-75000-in-three-months-20090519-bdfd.html

Interesting, this guy has answered his own question about why retail investors are not keen to take up rights issues. And its amazing that the statement below doesn't scare the institutional investors from diluting their own stocks in light of the fact that the US economy is a basket case!

I'm having trouble comprehending the absolute stupidity. These capital raising aren't putting value into any of the companies, its just shoring up previous bad management decisions! Unbelievable!

Companies that decisively fix stretched balance sheets have tended to be rewarded in this credit-obsessed market and most stocks have soared recently given Wall Street has just stacked on its biggest two-month surge since the 1930s.

Cheers

 

[cheeyeen]

I am thinking SKI might be next to raise money since they have fair a bit of debt maturing soon, and also need money for capital expenditure for the new smart meter system. Their result/dist announcement is coming in two weeks time.. So could be the time they will do a raising. SPN, DUE, HDF etc has all gone through it. So there is a possibility that they will be next. and even APA could be lining up as well as they are one of the high gearing infrastructure stock out there.

 

[SilverRanger]

It does seem possible that SKI will soon join its peers for cap raising, and my guess is that it will be in the same form adopted by its peers (a non-renounceable rights issue )

 

[l-y-s]

what is an IB?