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$31.48 aub group limited

Ann: Proposed issue of securities - AUB, page-6

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stockmaster86

2,389 Posts.

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01/06/24

09:40

Post #: 74115372
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Originally posted by SouthernLad ↑

I wonder if the directors are hedging their bets to see where the share price settles once the institutional placement is completed and any ‘quick flick’ sales are out of the way.. If the share price is comfortably above $27.50, my inkling is they well go ahead and raise the additional cash while they can, otherwise it’s a bit of hassle to go through with a SPP and raise very little.

As the $200m being sought is well in excess of the initial $105m purchase price for the Pacific Indemnity shareholding and is providing headroom for FY25 acquisitions, it’s not like there is any immediate need for up to an additional $25m under a SPP. additional shares will presumably depress EPS in the short term while it sits on deposit or reduces debt.

So should the underwritten amount be split between an institutional placement and a SPP? Maybe yes, but probably a more expensive underwrite given the longer period that an underwriter is exposed to market volatility. Although as the last $95m not needed immediately, they could of chosen to underwrite a lesser amount under the institutional placement and take a risk on the amount raised under a SPP.

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Looks like the price is holding up well... hopefully that means an SPP is on the cards!

AUB Price at posting: $29.55 Sentiment: Buy Disclosure: Held
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(20min delay)
Last $31.48		Change 0.080(0.25%)		Mkt cap ! $3.641B

Open	High	Low	Value	Volume
$31.39	$31.76	$31.03	$7.590M	241.2K

Buyers (Bids)

No.	Vol.	Price($)
1	702	$31.46

Sellers (Offers)

Price($)	Vol.	No.
$31.50	850	2

View Market Depth

No.	Vol.	Price($)
1	650	31.320
2	716	31.300
2	3080	31.290
1	538	31.270
1	650	31.260

Price($)	Vol.	No.
31.500	850	2
31.510	716	2
31.530	650	1
31.560	650	2
31.610	700	2

Last trade - 16.10pm 20/06/2024 (20 minute delay)

AUB (ASX) Chart

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