Originally Posted by
CanadianAussie
In response to:
"Usually a dual listing ASX and NZX is beneficial for holders, however I suggest you read post 3862 above and ask yourself why is PLX wanting to allow the sale of $50 mill in 'new' shares and whether these additional shares would dilute the value of your existing shares?? As NZSA says...
"We believe on the face of the limited information a better option would be to keep the primary listing on NZX, and take a compliance listing on ASX and, if needed, raise additional capital from existing loyal shareholders."
Firstly, they want to raise $50M for growth. They've brought on 2 board members recently with M&A experience and have been vocal about this. They're looking at acquiring a company and need $. Why anyone would be opposed to this with managements phenomenal track record of capital management is beyond me.
Secondly, the NZSA should be ashamed of themselves. This company will double or triple in value when the ASX gets whiff of it. As an ASX investor I'm so high on it I opened up an international account to buy before waiting for the ASX float. The NZSA wonders why they can't raise money on the NZX? Because raising $50M at a share price of $1.40 results in 35M more shares. Compare that to listing it on the ASX which will value it higher (I'll explain this below). Let's say conservatively the ASX values it double at $2.80. Raising $50M at this price results in 18M shares and HALF THE AMOUNT OF DILUTION. I'd question the NZSAs motives and who's best interests they have in mind.
Also I don't know what the NZSA is whingeing about, management has stated they'd give existing shareholders a chance to participate in the capital raise.
Why do I believe it will rerate at least double on the ASX? Because I've looked at over 250 micro and small cap ASX stocks and they're absolute trash compared to this company. The ASX will eat this company up. We have nothing like it; it's a bloody unicorn. To have a company 45% revenue growth 3 years in a row, profitable the last 2 (ignoring the issue of convertible notes), cash flow positive the last 3 (again convertible notes ignored) and have gross margins of over 75% is unheard of on the ASX at this price. Has anyone done a DCF on PLX? I have, it's crazy how much the NZX undervalues it.
Unless you like getting diluted more and making less money please, please, please don't vote against an ASX float.