"On 20 August 2019 IPH Limited announced an interim dividend of 13.0 cents per share with arecord date of 26 August 2019 and payable on 18 September 2019. The issue price for shares to be allotted to participants in the Dividend Reinvestment Plan forthe above dividend is $9.36 per share. The price is based on the daily volume weightedaverage price of IPH shares traded on the ASX for the 10 trading days commencing on thesecond trading day after the above record date, being 28 August 2019 to 10 September 2019inclusive."
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Todays SP is significantly lower than the DRP price of $9.36. (At 10.30 am it currently stands at about $9.03). Do we understand correctly that participating in the DRP on this occasion is not a particularly good move, in that we would be effectively buying the stock at a considerable premium?
Thank you, if anyone can throw some light on this issue.
IPH Price at posting:
$9.06 Sentiment: None Disclosure: Held
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