Thinking exactly like you are Justakiwi
Printable View
Thinking exactly like you are Justakiwi
the offer document said "Oceania Healthcare is seeking to raise up to NZ$20 million under this Retail Offer, withthe ability for Oceania Healthcare to accept oversubscriptions at its discretion".
but no mention of increasing the size of the issue in today's announcement. Given the size of the over-subscription, not doing so is very poor form I think. Further poor treatment of retail shareholders
Cant win with some people, OCA make up a large part of my portfolio and I had no spare cash to apply and I am still happy.
Actually - they did. Just chew yourself through the Appendix 2 A they released today (https://announcements.nzx.com/detail/370675). They are applying to create new shares for exactly $20m (you need to know how many shares they had outstanding prior to this CR, subtract this number from the number of new shares they claim and multiply that with the price per new share). $20m - no oversubscription.
Only question left is - how they distribute these new shares.
yes, agree we have got to wait and see. They did say "While Oceania Healthcare has attemptedto make the Retail Offer as fair as possible for EligibleShareholders by increasing the individual application capfrom NZ$15,000 (the limit for shareholder share purchaseplans under the NZX Listing Rules) to NZ$50,000 and by providing that any scaling will have regardto individual shareholdings at the relevant Record Date ... the Retail Offer is not inaccordance with your proportionate shareholding."
I think they have to increase the offer size, otherwise they'll effectively undermine the claim that they tied to be as fair as possible including by increasing the cap from $15k. They can't really say that, not increase the offer size, and then still cap allocations at, say, $15k.
Yes, of course, we all know that this was not a proportionate or rights offer.