FYI from the AFR "Costa Group's institutional shareholders have...

FYI from the AFR

"Costa Group's institutional shareholders have left about one-fifth of offered shares on the table in the company's heavily discounted equity raising.

Stockbroker UBS launched an auction for 8.7 million Costa shares left over from the institutional portion of the rights issue after market on Tuesday, and was seeking bids by 6pm for funds from Australia and the Asia-Pacific.

While the institutional take-up rate was not disclosed as part of the auction, analysts reckon it was likely to represent about 80 per cent of rights available.

The institutional offer will be followed by the retail shareholder raising which is slated to open on November 6, with retail rights trading to take place over the coming week.

UBS also warned that the 8.7 million number was subject to change with its "reconciliation" process ongoing.

The broker was calling for bids in 5¢ increments from the $2.20 a share floor price, which was also the rights issue price.

The floor price represented a 31.4 per cent discount to Costa's theoretical ex-rights price and a 36.4 per cent discount to the last traded price.

The parcel of shares was worth $19.2 million at the floor price.

UBS said bids from investors in other parts of the world would close on Wednesday morning.

The auction will provide the strongest indication of where Costa Group shares are likely to trade when they get back on the ASX boards."