Retail punters think a dividend yield is a valuation tool. But the yield at IPO looked overly inflated to support what in my opinion was an excessive valuation.
The yield was stated as 4% implying a distribution of $109.8m ($2.7bn mkt cap at IPO x 4% - see p6 of Offering Document) which compares to annualised FFO of around $85m ($42.5 for first half x 2 - see p105)
In other words, on my calculations the FFO doesn't cover the distribution so they appear to be borrowing to pay it!
So, Financial engineering + over allocation to retail + under allocation to instos + big selling syndicate + no meaningful independent deal research = a great deal for the seller (not so much for retail suckers)
Just my opinion, DYOR.
DGT Price at posting:
$3.65 Sentiment: Sell Disclosure: Not Held
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