Retail investors are brokiescan't gamble on giving them a bigger...

First 3 Last

Share
Profile

Follow
Tren1

1,933 Posts.

273

16/03/23

12:25

Post #: 66799980
Share

Originally posted by andy777: ↑

Wow considering this is non-renounceable I am amazed that only 53% of retail holders took up the offering. Even if you took up the rights issue and sold on market, you would make a tidy return on the outlay. The disappointing aspect of this raising is that retail investors were unable to apply for extra rights in the issue. This whole raising was at a disadvantage to retail holders and SGR management need a bit of a kick up the backside over how they have treated retail holders.

First they made the rights issue non-renouncebale, which may have some justification given the urgency. Secondly they allowed institutional/large holders to obtain a much bigger slice of the pie at a discounted rate. If they allowed retail holders to apply for additional shares in the issue, this would have alleviated some of the unfairness. I also don't see how this would have had any negative impact on underwriting the issue and it would have created a more stable shareholder base, with a higher proportion of slow moving retail investors.

PS They certainly pumped up the urgency of the rights issue and there is some argument that it was overblown. Considering the changes to the NSW gaming tax are yet to be passed they had time on their side. Instead they have effectively diluted retail holders, to the benefit of the a few big new investors and the underwriters.

Expand

Retail investors are brokies

can't gamble on giving them a bigger slice of the pie and then getting burnt based on participation rate

SGR Price at posting: $1.41 Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

NYR

Nyrada rat study shows no genotoxicity in brain injury drug NYR-BI03

CHM

Leukaemia patient shows complete response in Chimeric Therapeutics' latest trial

Arika to pump $3.2M into gold exploration at WA's Yundamindra following strong maiden program

RCE

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

NEU

Neuren sees FDA greenlight for 3rd trial into children with Phelan-McDermid syndrome

There are more pages in this discussion • 7 more messages in this thread...

First 3 Last

Add SGR (ASX) to my watchlist

(20min delay)
Last 28.5¢		Change 0.020(7.55%)		Mkt cap ! $817.5M

Open	High	Low	Value	Volume
27.5¢	29.0¢	26.3¢	$6.237M	22.44M

Buyers (Bids)

No.	Vol.	Price($)
2	12947	28.5¢

Sellers (Offers)

Price($)	Vol.	No.
29.0¢	605309	19

View Market Depth

No.	Vol.	Price($)
2	12947	0.285
8	146488	0.280
10	723452	0.275
25	688972	0.270
19	616986	0.265

Price($)	Vol.	No.
0.290	605309	19
0.295	952472	18
0.300	1028397	21
0.305	444812	6
0.310	727441	17

Last trade - 16.10pm 07/10/2024 (20 minute delay)

SGR (ASX) Chart

Retail investors are brokiescan't gamble on giving them a bigger...

Nyrada rat study shows no genotoxicity in brain injury drug NYR-BI03

Leukaemia patient shows complete response in Chimeric Therapeutics' latest trial

Arika to pump $3.2M into gold exploration at WA's Yundamindra following strong maiden program

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Neuren sees FDA greenlight for 3rd trial into children with Phelan-McDermid syndrome

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Retail investors are brokiescan't gamble on giving them a bigger...

Top Stories

Nyrada rat study shows no genotoxicity in brain injury drug NYR-BI03

Leukaemia patient shows complete response in Chimeric Therapeutics' latest trial

Arika to pump $3.2M into gold exploration at WA's Yundamindra following strong maiden program

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Neuren sees FDA greenlight for 3rd trial into children with Phelan-McDermid syndrome

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News