$6.73 is better than the institutions paid at $7.00 so it’s not a bad deal for shareholders
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According to this morning's news release from Contact, your calculation is 'spot on' Southern Lad. $6.74 it is!
https://www.nzx.com/announcements/368944
"Contact Energy Limited (NZX/ASX: CEN) (“Contact”) is pleased to announce that its non-underwritten NZ$75 million retail offer (“Retail Offer”) has closed oversubscribed. The Retail Offer was well supported by shareholders, with Contact receiving applications totalling approximately NZ$230 million. Scaling and the return of any surplus application amounts will be carried out in accordance with the terms of the Retail Offer contained in the Retail Offer Booklet dated 18 February 2021."
Around 3 times oversubscribed! But no mention of accepting oversubscriptions as per the offer document.
SNOOPY
Does anyone know the formula for the scaling back of applications?
“Trading of new shares issued under the Retail Offer is expected to
commence on NZX on 12 March 2021 ......”
When will I know how many shares I got ?
When will my funds be returned to me ?
Anyone know ?
Thx in advance, on holiday and don’t have full electronic toys to research it properly.
Assume we will see an announcement Friday on scaling and whether any oversubscription will be accepted. Given the need to fund the upcoming dividend on any additional shares plus the closing price today of $7.09 being well north of $6.74, I’m picking they will pass up the opportunity to increase the SPP above the $75m. Given CEN’s ability to raise debt, a decision to increase the SPP issue size will be an indication that directors think $6.74 cum dividend is above fair value.
From the offer documentation… You will receive the Offer Shares issued to you under the Offer on the Allotment Date, which is currently expected to be on or around 12 March 2021. Confirmation of the number of Offer Shares issued to you under the Offer will be sent on the Despatch Date, currently expected to be on or around 17 March 2021. Refunds will be made by direct credit only to the bank account held by the Registrar. Any refunds will be issued within five business days following the Allotment Date.
SPP allocations are now showing up via Link Market Services log in.
We got 69% of what we applied for. Or 15.34% of holding.