Australia's largest stock trading and investment forum Australia's #1 stock forum

TGR

0.00%

$5.22 tassal group limited

I agree it's not fair. Would have preferred a rights issue so...

First 3 Last

Share
Profile

Follow
rvajna

8,406 Posts.

611

21/08/19

21:19

Post #: 40084174
Share

Originally posted by BRAGG: ↑

Solid result from Tassal but I’m disappointed at the way the raising of share capital is structured. I guess it’s fairly common these days to make an underwritten placement rather than an underwritten rights issue because the placement can be done quickly and as such there is less risk to the underwriter than if they had to oversee a rights issue over a 3 to 4 week period. With less risk the underwriter probably charges less of a fee for the Placement option.
However from a shareholder perspective I’m being diluted by the issue of these new shares at a significant discount to market to outside investors. The main winner would seem to be management who might achieve bigger bonuses by growing the company at lower cost.
Sure I can apply for $15k of shares, but that might be scaled back and under a rights issue alternative I might have been entitled to more than $15k worth.
So while its common practice these days I’m not sure it has more advantages for management than it does for existing shareholders.
Hopefully the prawn business will also prove lucrative. Just wish that as an existing shareholder I'd been given first option to finance its expansion.

Expand

I agree it's not fair. Would have preferred a rights issue so rewards go to loyal shareholders. The institutional investors then dump on market walking away with profits that should go to existing holders. All we can do is try our luck in the SPP. Alternatively you can buy on market as there is not much difference in the price now especially if you are a long term holder.

TGR Price at posting: $4.54 Sentiment: Hold Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

I88

Large fault structure and uranium anomalies picked up by Infini at Newfoundland play

PH2

Pure Hydrogen inks MOU for 5 hydrogen buses in Saigon – days after Twiggy's FFI reeled back in

HBF to throw 10% vote behind NDC BidCo's buyout of Pacific Smiles Group

29M

High-grade copper results provide some relief to 29Metals after earlier mine shutdown

Biden's exit bakes in a Kamala Harris ballot while markets expect Trump to win. How could equities fare this week?

There are more pages in this discussion • 5 more messages in this thread...

First 3 Last

Add TGR (ASX) to my watchlist

I agree it's not fair. Would have preferred a rights issue so...

Top Stories

Large fault structure and uranium anomalies picked up by Infini at Newfoundland play

Pure Hydrogen inks MOU for 5 hydrogen buses in Saigon – days after Twiggy's FFI reeled back in

HBF to throw 10% vote behind NDC BidCo's buyout of Pacific Smiles Group

High-grade copper results provide some relief to 29Metals after earlier mine shutdown

Biden's exit bakes in a Kamala Harris ballot while markets expect Trump to win. How could equities fare this week?

Featured News