News: CCP Credit Corp Group Looks To Raise Up To A$150 Mln, page-17

So I cant really understand the share price movements up to $17 following the CR announcement. Not the usual way of things (particularly as record date for the SPP was 28/04... so no benefit to buying yesterday, but the market will do what it wants.

On the topic of Capital raisings, as a small-time investor, I am a bit annoyed that the insto's get offered the huge slice of the pie, which is always at a major discount of course. As well as the underwriting fee (I think 3%, but this would depend on the size of raise I suppose).... so it is always a hugely dilutive exercise to existing shareholders. And a bit of game of mates to all of the investment banks out there. Prefer it when it is an issue like 1 new share for existing 10 shares. Most investors would take that up (at a 10% discount) if they had any faith in the company. And this way the SPP would not dilute existing shareholder base. Or at the very least make the SPP a bigger component relative to the institutional placement (maybe 75 mill each).

I understand that Collections have taken a hit - BUT it has only been 1 month and reducing gearing to 10% is too conservative in my view. As EPS will plummet for the extra 20% of shares on issue.... perhaps the company senses collections will remain subdued as debt collectors have been given the warning to 'go easy' on repossessions etc (mentioned in the announcement). A bit like the mortgage relief and the lack of evictions will probably make some renters a bit opportunistic on their rental arrears.