Ann: Trading update, debt refinancing and equity raising, page-11

So, yes you can pick up "a few thousand worth", maybe. But others will apply for $30k worth and dilute you.
But is is the institutions that will benefit.
Since it is fully underwritten, I would have liked to see a lot more allocated to Eligible Shareholders.
(Please check my maths..... I think it is correct, but happy to be corrected!)


@HK1,

I think I might be able to correct correct you a bit.

The distribution of shareholders (in last Annual Report) looks like this:

- 1,673 shareholders have less than 1,000 shares (so, say, ave of 800 each)
- 1,286 shareholders have 1,000 to 5,000 shares (so, say, ave of 3,000 each)
- 275 shareholders have 5,000 to 10,000 shares (so, say ave of 7,500 each)

Collectively, these 3,234 shareholders are what would reasonably be classified as "small shareholders" (and they represent 93% of all shareholders)

So, the total number of shares represented by these shareholders is:

1,673 * 800 + 1,286 *3,000 + 275 *7,500 = 7.26m shares

Based on the ~588,000 SPP shares on offer, that equates to a 1 for 12.3 issue.

By contrast the issue for the company overall is: current shares on issue (130.1m) divided by new shares to be issued ($104m / $17 each = 6.12m), so effectively a 1 for 21.3 issue

So, while small shareholders are unlikely to get their full $30,000 allocation, they will not be diluted if they apply for the full amount. It is that this is a quite small raising which is what makes the $10m figure seem a bit paltry.

.