Sorry, do you mean "Don't" trade the IPO, then invest later on ?
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In an SPP all holders are entitled to buy whatever the limit is, regardless of the size of their holdings. There are exceptions in that countries with requirements for a full prospectus, or the equivalent, are normally excluded. USA is one of these and often companies will take the cautious way out by restricting the SPP to shareholders with Aust or NZ addresses. On rare occasions, NZ has also been excluded, but probably for admin reasons citing such excuses as mail delays.
At least, that has been my experience!
I thought there was a $15k limit or else a prospectus has to be issued. I think the company can also set the number of shares you must hold to qualify (XRO did a couple where you had to hold at least 500 shares - that wasn't worth much back then but now over $5k worth).
I think they also limit to NZ so they dont get caught by other countries disclosure requirements (ie. having to issue a prospectus).
Oops! My comments above relate to Aust SPP's. Better taken with a grain of salt where NZ companies are concerned.
:blush:
Theoretically you can get $15000 worth even if you have a single share. However, often companies put a limit on the size of the capital raising. They company may have to scale back applications when they get too many applicants. One of the strategies for scale back is on a pro rata basis.
Only if the head shares are in demand.Quote:
Every SPP price I have seen has acted as that tagret
There's been plenty of SPP's, admittedly in Australia where they are longer established as a capital raising stratagem - and more numerous - that have failed to "fire" and ended up with shortfalls to the issue and depressed the SP. I've had a few of them - and abstained from a few winners!
:ohmy:
I found that funny too. A PR announcement disguised as an NZX announcement. Those revenue numbers would have effectively been known at the IPO date so nothing new. Just building the hype to position the SPP price higher.
Moosie - stick to caffine, stay away from that sugary Kool-aid.
came acoross this for all of you who follow Snakk..dont know if of any interest
Update on Investment in Snakk Media Limited (“Snakk”)
8:30am, 25 Jan 2012 | GENERAL
CLARIDGE CAPITAL LIMITED
24 January 2012
BY EMAIL: announce@nzx.com
NZX Limited
WELLINGTON
Update on Investment in Snakk Media Limited ("Snakk")
As previously advised to the market, Claridge Capital Limited ("CLA") subscribed for 25,000,000 new ordinary fully paid shares in Snakk at an aggregate issue price of $225,000 (0.9 cents per share) during the course of last year.
CLA's shareholding represented approximately 13.9% of the total number of shares on issue in Snakk at the time of the subscription.
CLA advises that Snakk has recently completed a small capital raising whereby it issued 10.875 million new ordinary fully paid shares at an issue price of 5 cents per share. CLA's shareholding percentage in Snakk has consequently reduced to approximately 13.08%.