ABB 1.71% $3.57 aussie broadband limited

Ann: Share Purchase Plan Offer Booklet, page-50

  1. 2 Posts.
    In regard to the above, genuine question, please forgive my ignorance, does anyone know what exactly are the long term plans for ABB? Reading between the lines:

    "...., the SPP is part of a capital raising being undertaken to support acquisitive growth by M&A, new business product and
    technology development, and/or increase technology development to improve network efficiency and fund the growth of fibre and network assets."

    And

    "...ABB is seeking to raise $10 million under the SPP. However, if the total value of applications received under the SPP is greater than $10 million..."

    Now, looking at the above, it looks like they will maintain/compete within the landline and nbn infrastructure space, however, in terms of their competitors, will they catch up (e.g. Telstra?) in terms of the market share or even a 25% improvement over the next 3 to 5 years (read somewhere that they have about 10 percent of the market currently)? The next thinking i had was, surely wireless (ala 5G and onwards) is the 'future', perhaps that is somewhere they are looking into at...BUT surely 10 million is a little needle in the haystack, what can that get you (even with the 114 million already raised) to compete with the likes of tpg or telstra (i mean check out their market cap, long term plans moving into telehealth, etc) - if some posters are to believe ABB will get there (eval wise) within next 5 years or so ?

    Again the above is only my thinking...but what i am trying to decide is, do i;

    1) HOLD (Don't buy) - current leaning
    2) Buy little (3 to 10K) - original leaning towards when the news came out then had to double take due to the above thinking holistically
    3) Buy Max (30K)

    Thoughts? Forgive my ignorance (and perhaps lack of knowledge currently), just wanted an insight from the old heads on this forum and their thinking (their tactical nous and experience; rather than just buying based upon emotion and 'current price')
    Last edited by MakeYourOwn: 17/09/21
 
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