Only if you were going to be up for more than 150k. Otherwise they will give you your full entitlement.
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New shares are issued so yes it will dilute. If you hold IFT and generally approve of the capital raise, you might consider taking up your full allocation of new shares to maintain your ownership as a percentage of all shares outstanding.
I still think dilution is probably going to be a fallacy here. The overall growth they should achieve from this wont see your existing shares devalue. Opposite I expect. EPS maybe a short term dip.
Also they seemed excited by Wellington council exiting the airport. They could be buyers or part of a bigger sale. It opened up options. Plus they really seem to like the asset either way.
I would be surprised if they don’t buy the airport, they pay dividends, interest and Morrison fees in NZD, just makes sense to buy an asset they already know very well
Agree.
Now my 12 year old is armed with the information (and a spreadsheet) to explain to his mother why his education fund should be invested into discounted IFT shares. He is all over it.
The second lesson will be all about when to pick the correct timing to have the discussion.
As a Wellingtonian I like the idea of IFT owning the airport, as it roots them in the city a little more than would otherwise be the case, but it is a very small part of the portfolio. They were unsurprisingly asked at the recent roadshow if they would be looking to buy the council's share, and whilst you can't read much into the response's lack of enthusiasm, they hold all the aces vs the Council and the price would need to be very attractive. What price a runway extension...
I thought they had gone cold on a runway extension and were going down the route of better planes and technology to eventually meet the requirements for a population the size of Wellington.
IFT have been very poker faced on this one. Let's just say that Bright and A2 do not have a monopoly on playing a good chess game.