Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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@4Corners - epic, your "Lord Rubberstamp" is about the only instance of that exact phrase on the interplanetary interwebs.
Yes, shareholders knew a raise was in front of them, just not at 50%+ discount to market price!!!! I would think the price matters, especially given the announcement that the 371m ‘placing’ shares (the non SF&Co. portion of the 666m new shares) have been lapped up by institutional investors. Why not raise at 1p then? Or 10p? Yes, par value is just for accounting purpose, but I don’t think they needed to price this at 3p! Sinister motive behind this? Time will tell.
I guess you don’t appreciate my humour when I said ‘billions of shares’; anyways I thought it was funny there were issuing 700m shares to raise…….GBP 20m
The timing of the shareholder meet to approve the deal on 24 June……wow! “Guys…..thanks for putting in 3p/share. Should we go ahead and issue these shares?” Plus they made the announcement and conveniently placed the date of record two days prior, so that no one could buy and block the raise.Imagine if the trades of today had happened prior to record day – 40m shares traded today, and counting. That is a big chunk of existing freefloat. Sneaky bastards on the board without a doubt.
Did you read the document? Interestingly SeaFox is listed as a competitor. Remember last year when they said they are not competitors? Another interesting point is that vessels are valued at $500m - isn't there a case for someone to push for liquidation when mcap is $25m and debt is $400m?
I recommend to VOTE AGAINST THE DEAL as it seems they may not have enough votes without Horizon Energy
The placing will still certainly go ahead, the open offer might get scrapped as investors could then just buy on the open market.
I don't see what the fuss is all about?? Shareholders knew there was going to be a $25m capital raise!! It really doesn't matter at what share price the new shares are offered at.....as long as you have the spare capital to subscribe for your allocated portion. Let's just be glad it's only $25m which they are raising and not the original $75m (which would triple the cash call). If you don't have the spare capital to subscribe, then, well yes, you get diluted.
Re: comment below that there will now be billions of shares in issue, no, there will only be 1,016m at completion. Only 665.9m new shares are being issued. The 370.7m mentioned as part of the Placing is just the underwritten bit to make up the difference (if needed) not taken up under the Open Offer.
Re: the comment this does nothing for the debt and is just for additional liquidity. Erm, no, this is all about the debt. Read the document. The money being raised will be used to incrementally reduce debt.
Oh, and all the talk in the past on this board about having to place at par value or higher (10p) was misguided, as I said at the time. Par value is a meaningless accounting figure - can companies can easily reorganise the shares to issue new shares at whatever price they can. As now very clearly exemplified.
Glad I sold mine yesterday afternoon, whispers are not usually helpful but this time, wow!
what will happen if this goes sub 3p? will the placing and offer still get underway??
Totally agree. For those that can, guess best course is to hold for better value longer term. I’m sure SF and THEIR BoD will be hoping many dump and run, with those aligned with SF hoovering them up at a ridiculously low price. These shares are worth so much more than the current market value….
@Matthew125 - that was me being sarcastic - the best I could do on a painful day.
@ CaptNemo – anyone willing to pick 2m shares in a single trade would know what’s coming (I think)
The board could have done a raise at 5 or 6p, instead they choose 3p so as to dilute minority investors. Always believed that this board is there to rubberstamp SF’s decisions. See significant value in the stock, but SF’s rubber ducks will put a cap on share price gains through continuous frustrating actions.
Lows hit..
@ 4Corners - They would only offer 5p (maybe less) now!
SeaFox to everyone: Would you mind selling your shares at 10p now?
whats the open offer price at? i think the placing only kicks in for shares not taken up? so some lucky IIs get to pick up cheap shares at 3p..
onwards.
took another beating.
Loads of times wanted to buy in but always pain good luck longs
It means that we are getting screwed, some lucky bugger got wind of this yesterday and dumped over 2 million shares at 6p just after the market opened - no wonder.
It's a 50% dilution - your shares will now be worth (with luck) 50% less than they were yesterday. Barstards.
"...but surely it can't look good for a member of the UK House of Lords to be associated with a company that is screwing over minority shareholders and shredding up all notions of fit and proper corporate governance?"
LOL. How many times do we need to see this?
Hey AA - doubt Lord Rubberstamp cares - most like a retirement gig for him. He is also the chairman of IDH, an egyptian healthcare company in which SF owns a stake and is listed on LSE. On the plus side, that company appears to be well run, with the founders still owning a sizeable chunk.
Lack of investor presentation or details on the capital raise (even if saying "its not ready yet, but here is the timeline or the planned process") indicate that they absolutely don't give a rats ass about the rest of the shareholders. Part of the 'frustrate minority' playbook. We are about to be taken for a ride.
(forgot to finish last post before posting) ... hence to the extent that is at all a relevant factor then potentially this does all eventually work out positively in some way....
I'm not sure how naive or desperate an assumption this is - but surely it can't look good for a member of the UK House of Lords to be associated with a company that is screwing over minority shareholders and shredding up all notions of fit and proper corporate governance?
No doubt that the capital raise won't happen. Not sure if they can do an accelerated institutional placement since the board doesn't have the authority (in fact this is on the AGM agenda), and I am not sure they can wrap up something with all shareholders in under a month. The first option would be great if they can place at a higher price (less dilution to minorities). If those are not the options on the table, most likely some sort of bid next week (low ball ofcourse)
Well we finally have an AGM to look forward to, on the very last day of June. I assume that the last act of the AGM will be a magic trick - where $25m will be pulled out of a hat!!!!
The fact that we are now less that 20 working days away from the deadline for raising the money via a rights issue and there is NO word of how this will be done is ringing some very LOUD alarm bells. Anyone care to guess what is going to happen because I have no idea anymore.
Courtesy BBG alerts
Hopefully something this coming week, but the "7th June" target date to publish the annual report seems to coincide with the the 12month anniversary of the 22p transaction. Anyways, the way things are calm indicates something is up, or that all is well and taken care of :)
@4Corners agree but I just don’t think they will meet the threshold required to force a sale on the minority. I do think that having dragged it out and disrupted as they have, some will now be inclined to accept the circa 18p previously offered and rejected, even though GMS is in a much better position than it previously was.