Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Clearly not a magician
Mark. It's an effectively a secondary market and you can choose to sell yiur rights immediately if you so wish. But as it is a 'market' the price others will pay can push the price up or down.
As this is PI owned, I think the secondary market will be less liquid than we'd like.
Dimi - I reached a very similar conclusion from my calculations
Markkent - the Ri will likely be discounted, we just don't know how much. Each additional share could be offered for 0.5p which would make things a whole lot easier!
I don't think raising the funds will be an issue as it will be underwritten by some institutions with bonds. And the management team specifically mentioned leverage to ease the pain on shareholders which, based on my understanding as an amateur, will mean we will secure funds but with debt added to the balance sheet which will ultimately reflect in the share price.
My point is that the number of rights you are awarded is at the time the RI happens. If you have top sliced then you will hold less shares and therefore be entitled to less rights.
Why not qualify for as many rights as possible then it is up to you what number of rights you purchase or sell. Personal circumstances may change between the announcement and issue.
Anyway, that is a choice we all have to make. I think you know how I'm approaching it ;)
Caution. You will not need to top slice to fund the RI. This will simply reduce the rights you are entitled to as you will hold less shares.
'Look at tail swallowing' so you only sell what you need to raise funds at the RI price. Otherwise you are guessing (and limiting your options if you come across funds you can use further down the line).
Very explicitly called out that you will lose out ONLY if you don't act with the rights you are allocated based on your shareholding (excerpt below). Agree with the comments on bond holder raise. This will act as a guarantee to ensure all rights are taken up and they don't fall short in the raise. Also agree, wtf with the sp!
".....resulting in a significant dilution for existing shareholders who are unable or do not want to take up their rights entitlements or sell their entitlements in the market."
Mtel. X represents a number. Could be 1, could be 100,000,000
If shareholders vote against it, we go into the wind down plan.
I am sure they will line up institutional investors to guarantee the RI if existing shareholders don't take it up . And sure they'll do that with an enhanced discount to the already discounted RI....
Excellent summary Hexam. Only thing I would add based on my experience with IAG.
The rights issue happens on a secondary market. If the rights are in demand the amount you can sell each one for an increased amount. And of course if the demand isn't there the value of each right could decrease. I had to sell some of my IAG rights at a lower price than they were released at onvthe secondary market, to purchase more IAG shares. I 'technically' made a loss, but IAG bounced back after the issue and I made a very tidy profit.
So please be aware that this is likely an additional variable you will have to consider.
You will be allocated Xk rights. You can sell some of your rights and use the funds raised to buy the remainder. It is called tail swallowing.
Hell not he'll. Stupid pub trip to numb the pain of my other stocks.
My return flight from SEA was rammed. The entire airport was rammed. The US are travelling again, big style. Domestically maybe, but my experience this last week is that international travel is back (and the fact I travel for business for the first time in 2.5yrs emphasises that fact). I don't hold IAG right now as I have other investments (per my original post) but will be investing this months pay packet for sure.
GLALTH
Everyone is doing their nut about AMGOs share price. Look at in the context of the meltdown happening in the markets, my portfolio has been savaged (high risk admittedly). AMGO is treading water. In this risk off environment I'll take it. I won't be buying any more as I hold quite a lot already, but I'm sure as he'll not selling.
GLALTH
For transparency I have been invested quite heavily in IAG this past 2 years as an opportunist. I cut ties a few months back, but wanted to share I was at LHR T5 today and it was heaving. While the SP is painful now, I would say buy the dip has never been more appropriate than now. Market sentiment is driving most of this dreadful state of affairs.
I flew LHR to SEA and it was packed to the rafters.
P.s. I am invested in other travel stocks and also being crucified and giving myself the same advice :)
Nothing could be released until this was confirmed in an RNS. The question is....what comes next?!?!
I thought he was as confident as he could be without being arrogant.
The fact you started picking apart a couple of weeks vs a few weeks and now this just shows you're on the negative side of the house with your spin. Just flagging it for others....
Good luck all LTH
Gary hopes to get FCA approval in next couple of weeks. Seemed pretty hopeful.
I'd like to think we'll hear more about the go forward plan with the next set of quarterly results