NAB - National Australia Bank

[oldblue]

I'm not sure that there's anything "typical".

I've seen situations where up to a minimum amount has been allocated, then a percentage. Sometimes it's a reducing percentage above a minimum, sometimes it's an absolute percentage. Personally, if I had the funds I wouldn't try to finesse the game but would apply for the max and hope for the best. The opportunity cost of tying up funds for a couple of weeks shouldn't be a consideration, IMO.

 

[YELNATS]

I received two different applications for the NAB share offer for different holdings.

The application says any shareholder can only apply for a maximum of $15k.

If allocations are scaled back as seems likely, and there is a minimum number of shares offered to each holding after a scale back, I might get a bigger allocation by splitting my application over the two separate holdings.

Does anyone more experienced know how scale backs are typically done ?

I'm in the same position, with 2 different holdings, one inside a SMSF, the other outside.

My gut feel tells me to apply for the same amount for both holdings, that way to secure the most shares in total.

 

[YELNATS]

With the paper profit at over 20% on current SP I won't be worrying about tying up a bit of cash for a couple of weeks!

Point taken. It's just that I don't have unlimited funds and would also like to participate in BEN's SPP which is around the same time.

At the moment BEN's market price of $8.65 is around 28% above their offer price of $6.75.

Need to make the most hay possible while the sun shines.

 

[oldblue]

Point taken. It's just that I don't have unlimited funds and would also like to participate in BEN's SPP which is around the same time.

At the moment BEN's market price of $8.65 is around 28% above their offer price of $6.75.

Need to make the most hay possible while the sun shines.

I wouldn't normally do it but in that situation if I didn't have something else to sell I'd be tempted to try to raise a short term loan from my wife, my mother, my kids .............

 

[skyQuake]

Put it on the credit card even! Free money!

Preferably the BEN cc, so that way they make money, and might haev a surprise profit upgrade before you get your SPP shares

 

[Taltan]

Why not just sell the existing NAB or BEN shares that you must of had to have the SPP entitlement. Sell BEN at 8.65 and buy at 6.75. Even considering the scale back risk its a damm good deal

 

[oldblue]

Why not just sell the existing NAB or BEN shares that you must of had to have the SPP entitlement. Sell BEN at 8.65 and buy at 6.75. Even considering the scale back risk its a damm good deal

Precisely.

Unless of course you were only holding a handful of shares to qualify for any SPP's around.

 

[SilverRanger]

Anyone here knows how the scale back works for NAB? The offer document didn't state this in detail.

And of course we would all hope that NAB would do what ANZ did to please its retail shareholders, but how likely would this be?

 

[Rainmaker2000]

Scale back will happen........I don't know the methodology........I only own 28 NAB shares......so whatever the scale back, it will be a substantial increase to holdings

 

[oldblue]

Yes. a scale back is almost certain given the tone of NAB's announcements and the rumoured adverse reaction of underwriters to ANZ's decision to accept all applications in full.

NAB reserve the right on this of course and also method of scaleback.

 

[robots]

hello,

http://business.theage.com.au/busin...etail-can-deny-you-profits-20090814-el9z.html

from what i can gather, you will get what you are eligible to purchase

so if no participation in 2008 raising get 15k if you want, if participated then get difference up to 15k if you want

750mil would be accounted for on worst case scenario (full participation to last $)

thankyou
robots

 

[SilverRanger]

http://business.smh.com.au/business/nab-sticks-to-750m-issue-cap-20090816-embu.html
That's probably one more sign of a heavy scale back....

 

[oldblue]

http://business.smh.com.au/business/nab-sticks-to-750m-issue-cap-20090816-embu.html
That's probably one more sign of a heavy scale back....

I agree with that.

Without doing the sums on $750m/ # shareholders ( and we don't know how many will be restricted to less than $15k ) I would have thought that a scale back would be almost inevitable.

 

[johenmo]

QBE was about 20% of what you asked for. So I have put in, expecting 20-40% (all will be fine). The rest of this is to make 100 characters.

 

[YELNATS]

NAB just announced a massive scale back to their spp.

$2.6 billion received when they only wanted $750 million.

This means instead of getting about 697 shares if you applied with $15,000, you only get about 201 shares.

Disappointing for retail investors, but I guess we'll have to make do.

 

[SilverRanger]

Actually it's good that we know this early as that will make our hedging easier
No complaints with $1100 in less than 2 weeks

 

[liodj]

yes...$1K is good enough...

however any one know when we will get the refund for the unallocated fund????

 

[Motogoon]

Bummer, i chickened out & only got the 5k package.

Looks like i'll be getting diddly squat.

If you're listening NAB i think you should reduce all the 10 & 15k packages down to 5k & leave the 5k as they are, ha! should work out about right.

 

[johenmo]

Bummer, i chickened out & only got the 5k package.

Looks like i'll be getting diddly squat.

If you're listening NAB i think you should reduce all the 10 & 15k packages down to 5k & leave the 5k as they are, ha! should work out about right.

I went for 5K because 5K was all I wanted if I got the lot. So I'm happy with that. Still a few hundred bucks on todays price is ok.

But NAB should listen to you!!

 

[YELNATS]

however any one know when we will get the refund for the unallocated fund????

According to NAB's 25 August announcement,

Quote
Accordingly, the offer price for each NAB Share under the
2009 SPP is A$21.50. The NAB shares are expected to be allotted on 31 August 2009. The difference between the value of applications and the value of final allocations will be promptly refunded by NAB following allotment of the shares.
Unquote

So I guess the refunds will start flowing from next Monday. I hope mine goes straight into my bank account since I need to use the money for BEN's spp which closes Friday Sept 4.