Australian (ASX) Stock Market Forum

Companies on watchlist for capital raising/SPP

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sammy84 said:
TIS- record date not until the 29th. Ability to buy $15000 at .15, currently trading at .19:)
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Yes indeed. But TIS has very low liquidity. To sell $15K worth of shares you will have to take out 5 price levels.
 
What is the likelihood that mig will do a capital raising to pay out mqg, reduce debt and split the company into toxic and non toxic assets like gpt did?
 
CSR has gone into a halt for some capital. They are trying to split their building materials division with the sugar / methanol half.

Capital raising has been coming in rashes within a sector. Let's see if other building materials companies also pull the trigger. BLD was rumoured to be sounding around a couple of weeks ago. ABC and JHX are also possible candidates for the cap raising congo line.
 
VMG is an interesting one - good discount probably indicates that they really needed to pay down debt...I just wonder if the bank covenants aren't too strict on these guys given they are a growth company, time will tell but this is one that could have hockey stick profits if all goes well.
 
Can you fill us in more info on vmg, I've been eyeing this for a while

But what's
Rights Trading commences and existing Shares quoted on an "ex" rights
basis on the 28th OCt

Then
Record date for entitlements 4th of November, is this one the actual record date

Excuse my ignorance but I get a bit confused about rights trading
 
Galba. I rang the ASX today to confirm a lot of the issues people have had surrounding record dates, ex dates, T +3 etc. I asked friends in the industry and also rang a few share registers who all gave me totally different answers. My solution was to go straight to the source. The is, the ASX.

If you want to participate in a rights issue you must purchase prior to the ex date to be entitled to the issue.

You can sell out of a stock on the ex date, as this is the first day of trading that the shares trade without the entitlement to participate in the capital raising.

For a SPP where no ex date is given, to be on the register at the record date you must purchase the shares 4 business day prior to the record date. So if the record date is on the Friday, you must purchase by the close on Monday. I know this goes against the T+3 idea, that some have proposed but that’s what the ASX said and I also talked to a broker who told me that most trades are actually T+4 as settlement can be a very sloppy process.

This whole thing is just very confusing, so all I can say is I have done as much research as I can surrounding these areas and can provide you with what I now believe to be the correct interpretation of these key dates and the settlement process. If I’m wrong my sincere apologies.
 
Over the last 4 months, I have purchased $500 of shares (min parcel for my broker) where I believed there would soon be a capital raising, using fundamental analysis and press rumours. I only look at ASX 300 companies. Objective was to get cheap shares via SPP or pick up extra rights on a rights issue. And then immediately sell whole holding. Not been as profitable as I thought, although still OK. I have purchased about 12 companies. Usually I use two accounts so can buy two parcels (me and the wife). For SPP's, I have applied for maximum, for rights usually $20k worth. You have market risk on initial parcel (only $500) then have risk from BPAY date to trading date. The latter is asymmetric as you only BPAY if price is lower than market price. Of those that have come to fruition, profits and losses as follows

GMG +5,860 (only 1 account - kicked myself on this)
BOQ + 4,100
MIG - 4 (sold out when announced split with capital surplus)
VPG - 100
CSR -170 (no extras available so sold out)
BLY +220 (was looking very good until market tanked over last week)

In progress IIF, but looks like a dud given markets tanking again.

Last few weeks has shown it is a good strategy in a rising market, but not so profitable in a falling market. However, definitely appears to be a worthwhile strategy to date.
 
API 2 for 3 Entitlement offer to raise $112 million plus an institutional placement to raise a further $38 Million
 
gooner said:
Over the last 4 months, I have purchased $500 of shares (min parcel for my broker) where I believed there would soon be a capital raising, using fundamental analysis and press rumours. I only look at ASX 300 companies. Objective was to get cheap shares via SPP or pick up extra rights on a rights issue. And then immediately sell whole holding. Not been as profitable as I thought, although still OK. I have purchased about 12 companies. Usually I use two accounts so can buy two parcels (me and the wife). For SPP's, I have applied for maximum, for rights usually $20k worth. You have market risk on initial parcel (only $500) then have risk from BPAY date to trading date. The latter is asymmetric as you only BPAY if price is lower than market price. Of those that have come to fruition, profits and losses as follows

GMG +5,860 (only 1 account - kicked myself on this)
BOQ + 4,100
MIG - 4 (sold out when announced split with capital surplus)
VPG - 100
CSR -170 (no extras available so sold out)
BLY +220 (was looking very good until market tanked over last week)

In progress IIF, but looks like a dud given markets tanking again.

Last few weeks has shown it is a good strategy in a rising market, but not so profitable in a falling market. However, definitely appears to be a worthwhile strategy to date.
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That is the exact reason I started this thread :) Certainly not a great strategy in a falling market however. Sticking to ASX300 makes sense. Some of the smaller end miners are raising a few millions here and there and inevitably their share price stayed at the offer price level.

FWIW I think there is a round of cap raising coming with the building materials sector...
 
UMike said:
API 2 for 3 Entitlement offer to raise $112 million plus an institutional placement to raise a further $38 Million
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As per above, the idea is to get in before the announcements so one can take up any discount offers... API was limited only to existing holders. It looked good 2 weeks ago with offer price 65c and ex-price 85c. It's 70c yesterday so still in the green but by not much.
 
BOL - back in July had a potential merger on the table and decided to put capital raising on hold. Said they will review in a few months. It has been a few months, so one way or another there will be some announcements pending.
 
Keep an eye out for Minara MRE.

They are 1 of 3 bidders for BHP's mothballed Ravensthorpe nickle mine. As part of the process they are also exploring various funding options. So some possibility of cap raising. Of course they could go with debt funding, project finance or just placement to big instos.

Another to put on watchlist is BEC. Probably some time down the track however.

http://www.businessspectator.com.au...iatives-pd20091113-XR2EW?opendocument&src=rss
 
skc said:
BOL - back in July had a potential merger on the table and decided to put capital raising on hold. Said they will review in a few months. It has been a few months, so one way or another there will be some announcements pending.
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Massive $87m capital raising announced. Offer price 30c compared to last close of 47c. They are doing every cap raising method under the sun.

1-for-1 rights (on 171m shares) $13m insto and $39m to retail.
$15m placement (50m shares)
$20m SPP (another 66.7m shares), but not until Jan 2010

http://www.asx.com.au/asxpdf/20091118/pdf/31m4kfn6cj3ljg.pdf

Record date Mon 22 Nov, so for existing holders only. TERP 37c.. ~20% discount. I got a small parcel after making this post :D

Let's see how they open on Friday.

BTW they also received a takeover offer for 60c cash. Board rejected claiming that the price is less than their NTA of $0.89 and offer is conditional etc.

What they didn't mention was at what portion of NTA are they doing the cap raising?! Post raising NTA would be ~52c, so the offer price of 30c means a discount of 42%, compared to the takeover which was a discount of only ~33%. Hmmm.
 
skc said:
Massive $87m capital raising announced. Offer price 30c compared to last close of 47c. They are doing every cap raising method under the sun.

1-for-1 rights (on 171m shares) $13m insto and $39m to retail.
$15m placement (50m shares)
$20m SPP (another 66.7m shares), but not until Jan 2010

http://www.asx.com.au/asxpdf/20091118/pdf/31m4kfn6cj3ljg.pdf

Record date Mon 22 Nov, so for existing holders only. TERP 37c.. ~20% discount. I got a small parcel after making this post :D

Let's see how they open on Friday.

BTW they also received a takeover offer for 60c cash. Board rejected claiming that the price is less than their NTA of $0.89 and offer is conditional etc.

What they didn't mention was at what portion of NTA are they doing the cap raising?! Post raising NTA would be ~52c, so the offer price of 30c means a discount of 42%, compared to the takeover which was a discount of only ~33%. Hmmm.
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Sweet, thanks for the heads up! Interesting that theres a rights issue AND SPP.
 

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