Yes, but that's hardly a measure of relevance, because it...

Yes, but that's hardly a measure of relevance, because it reflects a theoretical ex-entitlement price on the basis that current shareholders will have already have received the 11.5c dividend just declared.

But TERP in relation to when the stock recommences trading tomorrow (i.e., before the stock goes dividend next week) is the relevant benchmark measure of how the stock should trade after the stock trades ex-entitlement.



Erratum:

I made an error in my earlier calculation of TERP ($4.26), because I used the incorrect current share count as the starting point.

The correct TERP is $4.11 --- [*]

(Calculated as follows:

Current SoI = 351m (@last traded price of $4.63)
Placement Shares = 129m (@$3.50)
Entitlement Shares = 168m (@$3.50)

=> Total Capitalisation = $2.67bn

=> Total Number of Shares = 648m

So TERP =$2.67bn divided by 648m shares = $4.11


[*] Excluding the SPP