July 7, 2010
The following list tracks companies which announce capital raisings but then leave the door open for new shareholders to buy in by having a later record date. The issue was explored in the October 5 email edition.
Adelaide Brighton: announced a $100 million placement at $1.80 a share on April 8, 2009, but the formal $10,000 share purchase plan wasn't launched until May 14 and the record date was May 6. We got on the register a second time, applied for $20,000 worth of shares and was scaled back to $10,000 but still made a profit of about $2500.
Adelaide Resources: announced a $2.28 million placement at 19c on September 29 whilst flagging an SPP, then the October 1 confirmation revealed the October 6 record date for the $15,000 SPP.
Amalgamated Holdings: announced a 1-for-4 entitlement offer at $4.10 to raise $107 million on November 3 but record date wasn't until November 12.
Antares Energy: announced a $10 million institutional placement at 25c a share on August 4, 2009, but the record date for the subsequent SPP wasn't until August 20, although it never really got into the money during the offer period.
Apex Minerals: announced a $108 million 9-for-2 entitlement offer in late September 2009 but left the door open with a record date that was delayed until October 12.
Asciano: first flagged its intention to offer a share purchase plan on June 15, 2009, but it was contingent on a placement and entitlement offer being approved first so confirmation of the $10,000 offer at $1.10 only finally came on July 17 with a record date of July 21.
Ausenco: announced a $40 million placement at $3.20 a share on May 29, 2009, but the record date for the accompanying $15,000 SPP wasn't until 5 business day later on June 4.
Austin Exploration: announced details of a 1-for-1 entitlement offer at 5c with overs on October 22 but the record date wasn't until October 30.
Bass Strait Oil: announced a 2-for-3 entitlement offer at 3c on September 22, 2009, but the record date was delayed until October 1.
Bathurst Resources: announced a $2.5 million placement at 5c on June 1, 2009 and the subsequent $15,000 SPP had a record date of June 26.
Boart Longyear: first flagged its intention to offer a share purchase plan on August 17, 2009, but it was contingent on a placement and entitlement offer being approved first so confirmation of the $15,000 offer at 27c only finally came on September 25 with a record date of September 24.
Brickworks: only left the door open for two days, but even put out a special announcement reserving the right to scale back the opportunists piling in for the $15,000 SPP at $12.40, a 7.5% discount.
Campbell Bros: announced a 1-for-6 entitlement offer at $22 on October 1 but delayed the record date until October 12.
Capral Aluminium: 1-for-1 entitlement offer at 2.5c was confirmed on October 9 but record date was delayed until October 16.
Caspian Oil & Gas: announced a placement and $15,000 SPP at 1.5c on October 2, 2009, but the record date was delayed until October 14.
Central Petroleum: announced a $26 million 1-for-1 renounceable entitlement offer at 10c on April 9, 2009 but the record date wasn't until April 27 and the company eventually accepted $5 million in additional applications.
Clean Seas Tuna: announced results of a $42 million placement on October 22 but subsequent $15,000 SPP at 25c must be approved by shareholders at November 30 and the record date is delayed until November 26.
Commonwealth Bank: announced a $10,000 SPP on December 10, 2008, after completing a $2 billion institutional placement but didn't launch it until February 16 with a record date of February 10, 2009. Ended up being the biggest SPP in history with $865 million raised, but investors were diddled out of the $1.13 interim dividend which went to the institutions which took up the placement at $26 a share.
Crane Group: announced a $40 million placement at $7.50 on March 21, 2009 but then didn't launch formal SPP until April 8 with a record date of April 6. We got on the register a second time, applied for $18,000 worth of shares, was scaled back to $15,000 but still made a profit of about $4000.
Eastern Corporation: announced a placement and 1-for-4 entitlement offer at 24c on May 22, 2009, but the prospectus record date wasn't until June 10.
Energy & Minerals Australia: the uranium explorer announced a $12 million capital raising on July 15, 2009, but the record date for the subsequent SPP wasn't until July 22.
Forest Enterprises Australia: announced a 1-for-1 entitlement offer at 7.5c on September 16 but record date wasn't until September 24.
Graincorp: announced a $60 million placement at $6.25 on May 18, 2009, but the record date for the accompanying $15,000 SPP wasn't until May 27 and the documentation warned opportunistic shareholders may be scaled back.
Heemskirk: announced an $11.5 million placement at 45c on June 4, 2009 but the record date for the subsequent $15,000 SPP was June 11.
Horizon Oil: announced a placement of $18.5 million at 10c on April 8, 2009 and then this update on April 14 revealed the SPP record date would be April 20. Shares subsequently took off and SPP was extended until after this announcement that half the PNG assets had been sold for $US55 million. Shares were at 18c when SPP closed but then the scale back announcement revealed that those who bought in after April 8 and who held less than 5000 shares when the offer closed were only given 5000 shares whereas everyone else got the full 100,000. It appears that about 1000 shareholders piled in after April 8 because the scale back reduced the SPP from $20.9 million to $14.1 million. The company had 4288 shareholders when the offer was launched and then announced the take up rate was 47.6% after 2517 applications were received suggesting the register had expanded to 5288 shareholders.
ING Private Equity: announced a 1-for-1 entitlement offer at 17c on June 9 but the record date was June 17.
Lincoln Minerals: announced a 1-for-3 entitlement offer at 8c on May 22, 2009 but the record date was June 1.
Macarthur Coal: announced a successful $190 million institutional placement at $6 a share on June 19, 2009, but the record date for the subsequent $15,000 SPP wasn't until June 24.
Macquarie Airports: confirmed its 1-for-11 entitlement offer at $2.30 on September 30 when shareholders approved the $345 million internalisation deal but delayed the record date until October 12.
Macquarie Leisure: announced a $41.7 million placement and $15,000 SPP at $1.15 on June 24 but the record date wasn't until July 2.
MM& C Contrarian: announced a 1-for-1 entitlement offer with overs on March 26, 2010, but the record date wasn't until April 7.
Neptune Marine: announced a $40 million placement at 50c on June 5, 2009 and the subsequent $15,000 SPP had a record date of June 18.
Nexus Energy: announced 1-for-3.75 rights issue at 22c on September 2 but record date wasn't until September 22.
Northern Energy: announced $8 million placement and $4 million SPP at 35c on June 11 but the record date wasn't until June 18.
Planet Minerals: announced a 1-for-2 entitlement offer at 10c on October 2 but the record date was October 12.
QMastor: announced a $15,000 SPP at 32c or a 10% discount on August 28 but the record date was September 9.
Staging Connections: announced a 1-for-2 offer at 2c on January 15, 2010, but the record date was January 25. However there was no ability to apply for "overs" so it didn't really matter.
Tabcorp: announced a $300 million placement and SPP at $5.80 on January 29, 2009. The record date of February 4 was 3 trading days after the announcement but we bought a second parcel of shares on January 30 and received two offers which generated a profit of $800 on a $10,000 investment.
Tissue Therapies: announced details of a $15,000 SPP at 15c or a 20% discount to VWAP on October 21 after completing a $5 million placement but the record date wasn't until October 29.
Toro Energy: announced a $5000 SPP at 15c on September 17 but record date wasn't until September 24.
Troy Resournces: announced a 1-for-6 entitlement offer at $2 to raise $25 million on October 29 with an "expected" record date of November 12.
Watpac: announced a $22 million placement at $1.25 on September 4, 2009, but the record date for the heavily discounted SPP wasn't until September 15 so more than 4000 opportunists got on board.
Westfield: announced $2.9 billion placement at $10.50 on February 3 with no reference to an offer to retail investors but the subsequent $5000 SPP was announced on February 26 and the formal documentation went out on March 12.
White Energy Company: announced a $55 million placement and accompanying SPP at $1.50 a share on May 21, 2009 but the record date wasn't until May 29.
Willmott Forests: announced a $20 million capital raising on October 1 and came straight out promoting the fact that the 1-for-3 entitlement offer at 40c had a record date of October 12 and investors would be encouraged to apply for extras in the shortfall.
* If we've missed any others, drop us a line to email@example.com. Also, check out how several of these stocks have featured in successful capital raisings plays of 2009.
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