I personally only applied for a very modest amount (about 25% of my pro rata entitlement) in the shortfall offer, expecting it to be scaled back with only $10m prioritised to shareholders.
I don't know how accurate the fin review article was that mentioned a $44m shortfall. What would have happened, is after the pro rata offer closed Wednesday at 5pm, They would have had a shortfall (possibly the AFR $44m) and the 3 brokers would have done a book build taking into account the shareholder prioritisation of the 1st $10m - that's a minimum, more may have been allocated. ??
I know they wanted some bigger institutions on the register, so they probably would have been given a bigger share compared to the broker's smaller soph investors. That 5% Nugget49 mentioned sounds like is was how far the brokers had to cut back some of their clients.
Looking at the closing auction on Friday, with the 5m (? can't remember the figure - but big) bid, it sounds like some of the big boys also missed out.
At the AGM I asked (in a private conversation) how my own application for the shortfall offer would have gone. I was told it would have been scaled back, though no where near the 95% scaling back Nugget49 mentioned thru the brokers.
Just to be clear, we are talking about the Shortfall offer, not the pro rata offer. If you applied for your pro rata entitlement you will get the full amount.
FFX Price at posting:
$1.07 Sentiment: Buy Disclosure: Held
