The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Placing - 'The Issue Price of 14.0 pence represents a discount of approximately 3.45 per cent. to the closing mid-market price of 14.5 pence per Share on 13 May 2024, being the last Business Day prior to the date of this Announcement.'
That seems pretty little discount compared to what some companies have faced recently.
@OndoPlc Proposed Placing to raise approximately £3.0M via an accelerated bookbuild, and Open Offer to raise up to a further approximately £1.2M #ONDO The Issue Price of 14.0 pence represents a discount of approximately 3.45% https://twitter.com/Share_Talk/status/1790048234510885159
The Fundraising is conditional upon, among other things, the passing by Shareholders of the Resolutions at the General Meeting of the Company, expected to be held at 10.30 a.m. on 3 June 2024 https://www.share-talk.com/ondo-insurtech-plc-lonondo-proposed-placing-and-open-offer/
It's actually been walked down circa 50% from where the sp was, before the placing rumours commenced a couple of months ago. They have previous for this.
Not massively enamoured with 2 placings so close together. I think the product, and the strategy in pursuing Scandinavia and the US is sound. The financial side is leaving a little to be desired.
That said, now the placing is out in plain sight, I think the sp will recover. I believe a lot of shareholders exited over the previous few months.
I expect some PR fireworks from Craig and Co, and a regain of momentum...wouldn't a huge US contract win be just the sort of thing to smooth furrowed brows. Again, they have previous for this. Atb
It’s been walked down to let GH and the likes get cheap shares , rinse and repeat and we shouldn’t be surprised. This is more like a AIM share than a listing on the main market , I think only big news will get this moving up like a big deal with State Farm
I posted a few weeks back that the placing was coming. They had 400m cash, no mention on current liabilities.
No way they could not place. Actually happy this is happening.
My only real worry is this idea of directly employing plumbers. Seems like madness.
There is a rush when you install bots, they fix leaks and then what.
Proving the business controlling the plumbers is just artificial. If they cannot outsource it does not make sense
I wonder if this placing was a demonstration that the business is financially robust and will have resources in place to meet the expansion expected from Nationwide, current and expected new Insurers in the US.
I see this as a positive step and removes any perceived barriers moving forward.
I personally have no problem with employing direct plumbers. The more Leakbots that are installed the higher the percentage of leaks detected.
In addition leaks can re-occur and not always the same source within the home.
Directly employing plumbers in 34 states. Uk, denmark, sweden.
Turning into a logistical nightmare. Some states are as big as countries in europe. How many do we need. What happens when they want to leave or do not get enough work.
Leakbots are high impact. Switch it on and find existing issues - this is why water companies want it as impact strategy.
Makes no sense.
If you read the RNS, they are looking to appoint service partners ( discussions already started ) in addition to a limited number of directly employed plumbers.
Yup. That makes sense ( and was my original point). Without doing this it is too difficult.
I am happy they are raising money as it takes the worry away. They did indicate another potential 4.5m households in pipeline, which strangely i was disapointed with. I was hoping they were going for state farm or allstate ( no 1 and 2), but these would each be bigger than pipeline
It seemed plainly obvious that £1.08m wasn't going to go very far, a bit of a wasted opportunity to really make the most of the elevated share price in late 2023.
However despite the fact that dilution this time around is much greater 14p really isn't a bad result in this market - as someone on the sidelines I'm not sure there will be an entry as low as that on the open market.
Agree it was a bit silly not to tap the market earlier for more.
Personally i missed the spike, so i was quite happy to see the pull back to enter at 15.
Keeping a small % only in this. Still speculative until we really see some sustained non trial ramp up
Just my luck, topped up yesterday.
When you look at it, its the usual scenario. II's knew about the placing and those holding
... less than 3% will have sold out and can now buy back at a cheaper price.
"It seemed plainly obvious that £1.08m wasn't going to go very far, a bit of a wasted opportunity to really make the most of the elevated share price in late 2023."
Amazing that some still don't have a clue on how the market works. At 23p there wasn't demand for more than £1m, otherwise the company clearly would have raised more... at 14p there is more demand, hence why they can raise £3m. Absolute basic economics on supply and demand / equilibrium price.
Not necessarily true at all. More likely ONDO management misjudged it that's all. Share price had briefly touched 40p a few months before and 30p in the run up to the placing so 20.5p probably seemed dilutive at the time.
At the very least if that was the case they'd have certainly been able to raise considerably more at some price between the 20.5p placing price and today's 14p.
Anyway as predicted the SP is holding up well, I don't think 14p will become available on the open market.
The key thing is to keep an eye on the balance sheet and not get carried away with the story.
They were low on cash and are not yet cash generative.
Opening new markets costs cash, especially given year1 revenue is paying for the actual hardware.
The market just ran up too much and ignored practical issues.
Hopefully we see some (non trial)traction. If not i will be looking elsewhere.
If you include warrant exercises to 30/09/23 they have raised ~£6.4m since March 2022, inclusive of the money they raised at admission. They've made that money go a lot further than I initially anticipated it would, and so the £4.2m raised today gives them a decent runway. Dowgate provide broker notes and had a 50p target price as of April , so I anticipate an updated note from them soon. If revenues scale anywhere close to forecast over the next 2 years then this will be a very good entry point IMO.
Quick suckers rally yesterday