Great post g41.From my conversation with the CFO, it sounds like...

Great post g41.

From my conversation with the CFO, it sounds like the SPP (intentionally or otherwise) was a very effective exercise in raising the company's profile among brokers and investors.

I asked why they allowed the 2-day window to buy in in time for the SPP, and he said that unlike other capital raisings/dividends, SPPs do not have specified "ex-dates", and to me it seemed that the company thought that the window period would be only one day, and only later did it realise (given that our shares trade on a T+3 settlement basis) that the window period would last for 2 trading days. How this obvious fact wasn't clear to the directors, I do not know - but I suppose this is why they felt it necessary to make the announcement on the second day, confirming that you could still get on board in time for the SPP.

While I agree with everything you say, I don't think it would be necessary for BKW to bring forward the record date after seeing the level of interest, because all along the terms and conditions implicitly suggested that a scale-back could occur (though not in those words). As for your argument that they could be said to have misled the market if they reject 30-share applicants - again, it was in the original T&C that they could waive compliance with the terms of the issue if they wished to. (That clause really does make the whole offer document meaningless, but it says that if they want to, they can choose not to comply with the terms.)

It will be very interesting to see how this ends up. Let's hope that there is improved disclosure in future, and that companies like BKW will tell us in advance what their intentions are regarding the amount they wish to raise, and the purpose of the additional funds.