I’ve experienced a few capital raising that have really got up my nose, but I’m completely supportive of this one. Reasons ...
- CCP have been funding their own growth for a long time whilst also paying good divs. - they have a track record of being very astute with their investments. Eg. Walking away from debt purchases when price is too high - they’re only raising/diluting 10% and there is a retail offer of up to $15K - the retail offer is on better terms than the insto offer (lower of insto price or 2.5% to VWAP in May) - providing the offer allocations aren’t hugely scaled back, retail investors have the chance to secure more shares than instos. Logic being, you’d have to have >$150k of CCP shares as a ‘retail’ investor to be diluted more than the instos/sophisticated .. but if you had that many you’d qualify as sophisticated anyway (assuming reasonable weighting in the investors portfolio).
So I think very fair to retail investors - and I think that the CCP raising indicates that CCP are seeing very good prospects for growth in the USA! Looking forward to the 2H results announcement ... or a nice upgrade/update before end June.
CCP Price at posting:
$22.67 Sentiment: Buy Disclosure: Held
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