Australian (ASX) Stock Market Forum

VBA - Virgin Blue Holdings

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If I decide to partake more than 1-1 share entitlement offer, and if it gets oversubscribed. (say I am entitled to buy 1000 shares but I apply for 3000)

would that mean that I could get rejected for the SPP? if so, do they reject the whole amount all together or reject the amount that over the entitlement, and how is the cash deposited?

Anyone that receives the SPP letter gives us a shout thanx....
 
Steven12 said:
If I decide to partake more than 1-1 share entitlement offer, and if it gets oversubscribed. (say I am entitled to buy 1000 shares but I apply for 3000)

would that mean that I could get rejected for the SPP? if so, do they reject the whole amount all together or reject the amount that over the entitlement, and how is the cash deposited?

Anyone that receives the SPP letter gives us a shout thanx....
Click to expand...

Well it's not an SPP but a non renounceable pro rata entitlement offer, one new share for every one held. So there's no scope for applying for more shares than the entitlement. In fact, the issue is underwritten which means that the underwriters will pick up any entitlements that aren't accepted.

Disc: Not holding.
 
oldblue said:
Well it's not an SPP but a non renounceable pro rata entitlement offer, one new share for every one held. So there's no scope for applying for more shares than the entitlement. In fact, the issue is underwritten which means that the underwriters will pick up any entitlements that aren't accepted.

Disc: Not holding.
Click to expand...

That is only partly true.

The 1-for-1 is guaranteed for you and will not be scaled back.

You can also apply more than your 1-for-1 entitlement. However, if too many holders do so then management will scale back. The scale back may be related to your original holding, or related to the additional amount you've subscribed for...

Underwritten means that the underwriters will pick up any entitlements not undertaken. Say there are 100m VBA shares and 1-for-1 only attracted 50m, and further 20m of additional subscription, then chances are everyone who asked for additional shares will get them, and the underwriter will pick up the final 30m. If 1-for-1 is fully subscribed + some additional, the underwriter will need to pick nothing.
 
I see, that's very useful informatiuon, thanks.


I am planning to subscribe $3000 worth and my original holding entitles me only $1000.


Would I be correct in assuming that we have come to the final leg of market capital raising (90bn since GFC) on the australian market and oversubscription is less likely now?


Also if I decide to sell my current holdings now, and still apply for the entitlement offer, would I still get it? Because I anticipate some selling pressure on VBA stocks after retail alloted shares are allowed to trade on the market.
 
Steven12 said:
Would I be correct in assuming that we have come to the final leg of market capital raising (90bn since GFC) on the australian market and oversubscription is less likely now?
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Can't say I see a relationship between final leg of cap raising and degree of oversubscription. It has more to with the amount of discount available and the current market climate imo. VBA are priced at a steep discount.

Steven12 said:
Also if I decide to sell my current holdings now, and still apply for the entitlement offer, would I still get it? Because I anticipate some selling pressure on VBA stocks after retail alloted shares are allowed to trade on the market.
Click to expand...

I would think you are still eligible but check with ur broker.
 
You can sell now if you need to raise funds for the application. $15000 has generally been the upper limit for subscription but I'm not sure what limit VBA has imposed. If this offer is oversubscribed, I would think it will mainly be those looking for short term profits. I don't think the underlying business is doing too well at the moment.
 
I caught a VB flight from Adelaide to Perth yesterday afternoon.

I would estimate that about half the seats were empty.
 
Mr Branson wont let the share price down to 0.20 i dont think so in the next 3 months. But who knows.
 
OK, so VBA closed at 38c today, with 20% gain for the day. Theories on why it went up so much? Full participation in SPP a no brainer at this price, yes? Am I missing something?
 
I have been sitting on this stock for months, waiting and waiting for a rise...

As to why the rise, well the stock is VERY undervalued in my opinion!

The domestic network is very solid, it is the new international part of their business which is bleeding cash badly.

This was expected and loads are getting better on the international flights.

They also announced today that V Australia want to take over some of the Fiji flights from Pacific Blue.

This gives them the chance to use a plane which sits around in Sydney all day and maximum the revenue from it.

It also enables a MUCH better international experience than the domestic fleet provides.

1. They can sell then sell premium economy on flights to Fiji
2. They can sell business class seats - Not many will sell but currently the business class offering on Air Pacific is VERY poor.
3. Utilizing a plane which sits around all day doing nothing
4. Introduces people to the REAL V Australia experience, not just a domestic type plane.

I see a good future for Virgin Blue, I am tempted to buy up a bit more but will wait a few days and see what happens firsts.


NB: This is MY PERSONAL opinion only, don't buy anything on what I say. Do your own research!
 
Anyone been allocated their VBA spp shares yet? Hasn't come up on CommSec for me yet. What was the degree of scaleback?
 
I understand we will only see them on Wednesday? I'm still trying to decide if I keep them or not. But I am interested in seeing how many I actually get. Do we know there was actually a scale back?
 
Retail entitlement offer settlement date..............Monday Sep 7

Issue of new shares...................Tuesday Sep 8

Allotment of new shares....................Wednesday Sep 9

Normal trading of new shares on ASX........Wednesday Sep 9


I read somewhere, can't remember where, that it was over subscribed and there is a scale back but it did not say by how much.

I was entitled to just 150 shares and applied for 75,000 so if everyone was as greedy as me it will be a fair sized scale back.

PS just read this from asx site......

The retail offer was fully underwritten and will raise A$98.3 million. Due to overwhelming
demand, VBA will scale back applications for Additional New Shares made by existing
retail shareholders in excess of their entitlements, to ensure fairness among all
shareholders. Details of the scale back policy will be advised to shareholders at or about
the time of allotment of New Shares under the Retail Entitlement Offer. Following the
scale back, the Retail Entitlement Offer will be fully subscribed and there will be no
shortfall.

Warren
 
I was greedy Entitled to 85 requested 50,000!

Does anyone know how they usually return unused moneys to you and how soon after the new allotment is issued it happens? Been lucky enough not to have been involved in one scaled back yet.

My SPP fund needs replenishing for 2 more coming up.
 
plankton said:
I was greedy Entitled to 85 requested 50,000!

Does anyone know how they usually return unused moneys to you and how soon after the new allotment is issued it happens? Been lucky enough not to have been involved in one scaled back yet.

My SPP fund needs replenishing for 2 more coming up.
Click to expand...

You should see a cheque in about 2 weeks, maybe a little quicker, yet wouldnt count on it, they very very really DP back to your account.
 
Well this is lame.

Under the Retail Entitlement Offer, which was oversubscribed, Eligible Retail Shareholders were able to take up their Entitlement and to apply for Additional New Shares. To ensure fairness among all shareholders, where Eligible Retail Shareholders made applications for Additional New Shares in excess of their Entitlement, a scale back has been applied. Applications for Additional New Shares have been scaled back to a maximum of 0.824 times the shareholder’s original Entitlement under the Retail Entitlement Offer.

Applications for Additional New Shares less than this limit will be allotted in full, as will applications from Eligible Retail Shareholders for their original Entitlement.
Click to expand...
 
Do we get interest on the money or do they get a few weeks interest thanks to us being greedy?

Nothing in my commsec account yet but it's now so little it's not worth it.

Is it worth topping up more shares anyway? People have to start flying one day.
 
Spode said:
Do we get interest on the money or do they get a few weeks interest thanks to us being greedy?

Nothing in my commsec account yet but it's now so little it's not worth it.

Is it worth topping up more shares anyway? People have to start flying one day.
Click to expand...

Ohhh god no, no interest, and there aren't any fee's, there's the trade-off.

What a wonderful sunny day (sorry need 100 words to answer)
 

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