Ann: AIA strengthens its balance sheet with an equity raise, page-7

"To implement this strategy one also needs to have plenty of available cash to participate in the SPP."

Sure, but that's all part of investing; one needs to have capital to make capital.


"I bought 4 shares of COH before its placement and SPP announement. Now I need to fund 30K to fully participate the SPP."

I'm not sure I understand what the issue is; that's a really high-quality problem to have.

At COH's current price, you are going to make a ~35% return in the space of a little over 3 weeks (30 April is the day the COH SPP stock will be allocated).

That's equivalent to an annualised return approaching 600% (almost -guaranteed)!

Surely you could borrow money at a cost which is a mere fraction of that?

Otherwise, unless you are 100% sure that the other shares you own are going to go up by 35% over the next 3 weeks, you should sell some of them to free up the capital.

If offered a near-risk free 35% investment return by providing funding to one of Australia's pre-eminent companies, I'd beg, steal or borrow the money to participate.