Webjet Retail Entitlement Offer

[MattySquareleg]

New to Retail Investment Offers so was wondering if anybody could give me some insights. Thanks in advance!

STORY: I regretfully have some fairly recent shares in webjet, which until recently I wanted to get rid of, but they have since had a successful equity raise and are looking at enough cash to get through a very bad year, which seems to be at least a somewhat positive sign.

Having held a successful institutional raise at a heavily discounted $1.70 (currently trading at around $3), they are soon offering a retail investment offer on a one-to-one basis for the same price.

GOAL: Best way to take advantage of this situation.. Given I am at around a 40% loss on my shares at their current price, would it be worth me selling, say half my shares now while the price is decent, and picking up an equal amount in the discounted offer next week to get my holdings into a better position?

QUESTIONS:
How does the sale usually take place and through what platform? Is my allocation guaranteed or is it a race I will instantly lose to bigger investors?
How long does it take for me to claim the shares, and am I able to sell the shares I buy through it straight away on the ASX and make an instant profit, assuming they are trading above $1.70?
The Record Date for the offer is listed as end of day today, yet the offer opens on April 8th. At what point in time is my one-to-one allocation determined -i.e. if I sold most of my shares next week, would I still be entitled to the amount I originally held at the end of day today?

FWIW I have attached a screenshot of the offer announcement.

I know that's a barrage of questions, but whatever you can assist with would be so helpful. Thanks for any advice.

 

[Joe Blow]

Hi Matty, welcome to Aussie Stock Fourms.

I have merged your thread with the existing WEB thread as the topic is primarily concerned with Webjet and it is more useful for it to be located here.

New to Retail Investment Offers so was wondering if anybody could give me some insights. Thanks in advance!

GOAL: Best way to take advantage of this situation.. Given I am at around a 40% loss on my shares at their current price, would it be worth me selling, say half my shares now while the price is decent, and picking up an equal amount in the discounted offer next week to get my holdings into a better position?

Just thought I'd point out that ASF members are not permitted to provide you with this kind of specific financial advice. However, there is no problem with others offering general observations and opinions about Webjet and this particular equity raising.

 

[MattySquareleg]

Hi Matty, welcome to Aussie Stock Fourms.

I have merged your thread with the existing WEB thread as the topic is primarily concerned with Webjet and it is more useful for it to be located here.

Hi Joe, thanks for the welcome. My question really is more about understandning the mechanics of a retail entitlement offer, can I edit out some of the Webjet specific content and get it put back in the Nuts and Bolts section. I feel like it will get lost here, and as you rightly have stated I should not be asking stock specific investment advice anyway.

 

[Joe Blow]

My question really is more about understandning the mechanics of a retail entitlement offer, can I edit out some of the Webjet specific content and get it put back in the Nuts and Bolts section.

OK, as your purpose was to discuss the mechanics of a retail entitlement offer rather than to discuss WEB or seek investment advice, I have moved the posts back to a separate thread in the Stock Market Nuts & Bolts forum.

 

[MattySquareleg]

Much appreciated Joe, thank you.

 

[peter2]

Got a bit dizzy there for a moment chasing this post around. One second it was there, then it wasn't, then it turned up here.

OK a retail offer is generally for existing shareholders. If you don't already own shares before the offer is made public then you're not eligible for the offer. Occasionally there's an offer that is open to the public and there's time for anyone to buy shares and be eligible for the offer. Not in this case.

The offer is open for two weeks 8 April - 21 April. There is no rush to complete this offer. Your allocation is there if you want to buy it. You have these two weeks to state how many shares you'd like to buy by completing the form and sending it in. The form must be in their hands before the closing date.

This offer announcement indicates that you may apply for more than your allocation. There's no guarantee that you'll get all the extra shares that you apply for but you will get the number you're entitled to.

How to assess the advantages or disadvantages or whether this offer is reasonable value is for the WEB thread.

 

[MattySquareleg]

Got a bit dizzy there for a moment chasing this post around.

Haha. Thanks for the reply.
What is your understanding of how the record date works? If it is record date is 7pm tonight, could I for instance, sell all my shares on monday and still be eligible for the full amount of discounted shares when the offer opens?

 

[peter2]

The offer entitlement would have closed 24 hrs before the record date. This 24 hr period allows the share registrar to compile a list of the shareholders that are entitled to the offer.

Your entitlement is already locked in. The record date has no significance to you. You may now sell any or all of your WEB shares on the market at any time.

 

[peter2]

This is a copy of the Key Dates timetable which is important for your decision making process.


You'll note that when the suspension was lifted April 2nd, new shareholders were not entitled to any shares under this offer.

 

[MattySquareleg]

This is a copy of the Key Dates timetable which is important for your decision making process.
View attachment 101947

You'll note that when the suspension was lifted April 2nd, new shareholders were not entitled to any shares under this offer.

Thanks, have been looking at that. The 24hr window was not something I knew about. Ive seen info about that windows for record dates regarding dividends, but nothing about entitlement offers.

 

[qldfrog]

Haha. Thanks for the reply.
What is your understanding of how the record date works? If it is record date is 7pm tonight, could I for instance, sell all my shares on monday and still be eligible for the full amount of discounted shares when the offer opens?

Short answer yes
In retail offers and if the market price is above SPP price, you can mitigate risks by selling today what you plan to get at a discount thru the offer, or part of, your position is unchanged but your average entry price reduced...
Obviously means you still want to own some of these shares...

 

[MattySquareleg]

Thanks. Sold the lot this arvo, took a loss and will consider getting at least partially back in on the offer.

 

[qldfrog]

Note, unsure about web SPP but most spp allow you to bpay your funds so you can wait just a few days before deadline before commiting funds. Why risking it before
On smaller players, quite often the market price can fall below the SPP price during the offer...

 

[qldfrog]

And remember SPP equal dilution of value

 

[Colm Doc]

This is a copy of the Key Dates timetable which is important for your decision making process.
View attachment 101947

You'll note that when the suspension was lifted April 2nd, new shareholders were not entitled to any shares under this offer.

Hi guys, I’m very new to this so please be patient . I have paid via BPAY for the full amount of WEBJETs SPP, how do I know if I have been allocated my shares and when will I find out?

 

[peter2]

You should notice the additional shares in your broker account on Tues 28 April. You'll be notified by mail a few days later and if there's money to be returned they'll inform you of the process and timetable.


I haven't looked to see if there's any modifications to this timetable since it was announced.
It would be worth checking due to the possibility that the virus lock down may impact normal business procedures.

 

[Colm Doc]

You should notice the additional shares in your broker account on Tues 28 April. You'll be notified by mail a few days later and if there's money to be returned they'll inform you of the process and timetable.

View attachment 102334
I haven't looked to see if there's any modifications to this timetable since it was announced.
It would be worth checking due to the possibility that the virus lock down may impact normal business procedures.

Thanks mate

 

[TelecomJohn]

Hi All, I have a process question.

I bought Webjet shares on 3 April so I am entitled to apply for the Retail Entitlement.

Reading through the offer it talks about the Retail Offer Booklet being dispatched. I have found the Retail Entitlement Offer on Commsec with Proforma Application forms on pages 73 and 74. My question is. Where do I find the correct form and processes I need to follow to make an application?

Many Thanks in Advance

 

[peter2]

Sorry, @TelecomJohn you bought WEB shares too late to be eligible for the retail entitlement. You had to have owned WEB shares before they announced the offer.

When WEB shares resumed trading April 2nd they were ex-entitlement (not eligible).

 

[hanofee]

Hi guys, I’m very new to this so please be patient . I have paid via BPAY for the full amount of WEBJETs SPP, how do I know if I have been allocated my shares and when will I find out?

I'm new and confused too. Have a little of webjet, so all we need to do is basically pay the amount allocated via BPAY, right? No need to fill up any form?