39. Aristocrat Leisure: October 2021 (ALL): Unveiled a 1-for-20.56 PAITREO at $41.85 to raise $1.3 billion and help fund the $5 billion acquisition of UK gaming technology company Playtech. The offer was priced at an 8.6% discount to the previous close of $45.79 and an 8.2% discount to the TERP of $45.61. The institutional component raised $895 million and was 92% subscribed with the small shortfall clearing at $47.10, an impressive $1.49 premium to the TERP which generated $5.25 in compensation for each renounced share. The $405 million retail offer closed on November 8 with retail rights trading running from October 21 to November 1. The range was $4.24 to $6.75 with the VWAP $5.52, which was better than the institutional compensation payment of $5.25. The retail component raised $317 million with excellent transparency disclosing 78% participation by value and 49% by number. The shortfall cleared at $46.60 in a $97.86 million auction of the 2.1 million lasped rights, generating a $4.75 per share compensation payment to the 21,400 non-participating retail shareholders. Overall, a win for the instos which received 50c more at $5.25.
38. Transurban: September 2021 (TCL): $3.97 billion 1-for-9 PAITREO at $13 to fund $11.1 billion West-Connex acquisition, plus a sweetheart $250m placement to Australian Super at $13.07 when the previous close was $14.18 and the TERP $14.06. The institutional component of the PAITREO raised $2.9 billion with a 93% take-up rate and a 90c payment to non-participants. The $1068 million retail component comprised 27% of the PAITREO and raised $697m from 59,000 participants equating to 65% of the shares on offer with excellent transparency on the rights trading which was worth $8m, ranged between 53c and $1.18 and delivered an average VWAP of 87c. For those who waited until the end, the compensation payment was only 30c after the $380 million shortfall auction of 28.6 million securities cleared at $13.30 against a previous close of $13.56, which just happened to be a two month low. The circa 74,000 non-participating retail shareholders shared in $8.58 million. A win for instos, particularly Australian Super, given that instos ended up contributing $3.522 billion or 83.5% of the $4.22 billion raised when they started out with 73% of the company before the transaction. A win for non-participating instos as well which received 90c compo vs 30c for retail, ending a run of 3 wins for retail in terms of which class received more compensation in the shortfall bookbuild.
37. Pointsbet: August 2021 (PBH): $400 million capital raising which started with a $215 million placement at $10, an 11.4% discount to the previous close of $11.29. Then there was a $185 million 1-for-9 PAITREO at the chunky discount of $8. However, the placement was completed on July 30 whereas the $81 million accelerated institutional component of the PAITREO completed on Tuesday, August 3, when these are normally done simultaneously with a placement. Institutional participation was only 78% and the shortfall cleared at the institutional price of $10, raising $22.27 million in the bookbuild with 25% of that or some $2 a share being returned to non-participating shareholders. The $104 million retail component came with a 78 page offer document and closed on August 20, but it is not clear how much of that comprises founder/director entitlements. The retail shortfall cleared at $10.30 so non participants received $2.30, a 30c premium to the institutional shortfall. A win for retail.
36. Costa Group: July 2021 (CGC): $190 million 1-for-6.33 PAITREO at $3 to fund a $200 million acquisition in Queensland. The $114 million institutional component was 90% supported and the shortfall cleared at $3.30, generating 30c in compensation for non-participants. Retails rights trading ran from June 28 until July 12 and the retail offer was open from July 2 until July 19 to avoid the risk of a Bank of Queensland-style stuff with shareholders not receiving the snail mail offer in time. The $76 million retail offer had a 66% take up and ended up finishing 8.5 million shares or $25.5 million short. The retail shortfall cleared at $3.32, generating 32c in compensation for non-participants so a win for retail.
35. Carsales: May 2021 (CAR): $600 million 1-for-7 PAITREO at $17 a share to fund a US acquisition. The institutional component raised $428 million with the shortfall clearing at $18 a share, generating a $1 compensation payment although there was no precise disclosure on the size of the shortfall with the company quoting a figure of 83% participation excluding two individuals and 99% when measuring just Australian institutions. The $172 million retail offer had rights trading from May 17 until May 26. The offer was open for 14 days from May 19 until June 2. Outcome announcement disclosed that 8,300 of the 18,500 eligible shareholders participated to the tune of 67% or $115 million. The retail shortfall cleared at $18.60, a 30c discount to the previous close of $18.90 so a win for retail which received $1.60 in compensation compared with $1 for the instos.
34. Computershare: April 2021 (CPU): $835 million 1-for-8.8 PAITREO raising to fund a US acquisition. Was priced at $13.55, a 9.6% discount to the previous close of $14.99. Retail investors had 19 days to consider the 60 page offer document and retail rights trading ran from March 29 until 12 April. The institutional component raised $500 million with a 94% take up rate and the 6% shortfall worth $30 million cleared at $15.05, generating a $1.50 premium payment to non-participants. The $150 million retail shortfall cleared at $14.55, generating a $1 per share premium payment for the 21,000 shareholders who did not participate, so a win for the instos if retail waited until the end. The VWAP for rights trading was $1.23 so it was better to exit on market.
2020 - three
33. Pointsbet: September 2020 (PBH): foreshadowed a $300 million raising on August 28 in conjunction with announcing its full year results and a major marketing deal with NBC, but this was then expanded to $353m. The stock duly soared from $7.50 to $14 on August 28 and then, after 3 days of trading, the $303 million capital raising was launched on September 2. It originally comprised a $150 million placement although this was up-sized to $200 million and priced at $11. The institutional component of the $153 million PAITREO, a 1-6.5 priced at $6.50, raised $70.5 million with a 55% take up rate. The shortfall of 4.88m shares cleared at $12.50, raising $61 million and returning a hefty $6 a share or $29.3 million to non-participants. Rights trading ran from September 9 until September 15 with a value $5.7 million and an average price of $6.48. Retail investors had 15 days to consider the 102 page offer document which opened on September 7 and closed on September 22. There was a very healthy 92% take-up of the $82.7 million retail offer as $76 million came through the door. The 1.05 million retail shortfall shares cleared at $10.60, delivering $4.10 in compensation to non-participants so a win for the instos.
32. Tabcorp, August-September 2020: $600 million 1-for-11 PAITREO at $3.25, an 11.4% discount to the previous close of $3.67. Rights trading for 8 days from August 24 until September 3. Under-written by UBS with a management fee of 0.4% and an under-writing fee of 1.3% for the institutional component and 1.5% for the retail component. There was a 97% participation rate in the $371 million institutional offer and the shortfall of 5 million shares cleared at $3.70, generating a 45c compensation payment for non-participants. The 170,000 retail shareholders were offered a chance to spend $231 million taking up their rights, an average spend of just $1,360 each. Only 35,000 or 20.6% did so, committing $102 million, which was a 44% take up in dollar terms. Retail investors had 13 days to consider the 68 page offer document which opened on August 28 and closed on September 10 and rights trading ran for 9 business days between August 24 and September 3. The shortfall cleared at just $3.31, generating a 6c compensation payment to non-participants. The VWAP during rights trading was 32c with 8.5 million traded or some 12% of the total. A win for the instos.
31. Sydney Airport, August-September 2020: $2 billion 1-for-5.15 PAITREO at $4.56, a 15.4% discount to the last trade of $5.39. A 3 day trading halt until Friday August 14 for the institutional offer. The retail component closes on September 2 and has rights trading from August 14 until August 26. There was a 93% take-up of the $1.3 billion institutional component and the $100 million shortfall cleared at $5.30 generating a 74c compensation payment for the non-participants. This was a premium to the TERP of $5.26 and the stock closed at $5.31 when trading resumed on August 14. The $695 million retail offer went to 110,000 retail shareholders and the take-up was 62% in dollar terms or $430 million. There was excellent participation disclosure with 53,000 shareholders applying and rights trading was worth $19 million, ranging between 55c and 89c with the rights VWAP finishing at 78c. Retail investors had 13 days to consider the 76 page offer document which opened on August 18 and closed on September 2. The 58.1 million shortfall shares cleared at $5.50, a 20c discount to the previous close, and this generated a 94c compensation payment to non-participants as institutions shelled out $320 million. A win for retail given the instos only received 74c and the best outcome for retail was exiting at the end rather than on market.
10 month gap
2019 - just one
After 30 deals it was 10 wins for retail 15 wins for instos and 5 draws
30. Costa Exchange, October-November 2019: $176 million 1-for-4 PAITREO at $2.20 launched when the stock last traded at $3.46. The $87 million institutional component was 88% subscribed and the shortfall cleared at $2.30, returning 10c to non-participants. The stock finished at $2.63 when trading resumed on October 30 so institutional investors who participated finished in a much better position. The $9 million retail offer finished $66m or 74% subscribed and the 10.8 million shortfall shares cleared at $2.50 on November 21. The 30c compensation payment to non-participating retail investors was 3 times the 10c payment to non-participating institutions, so a win for retail ending a run of 5 wins for the instos on the compensation stakes. A total of 3.8m rights were traded at an average price of 54c so the better option was to get out on market. Retail investors had 12 days to consider the 80 page offer document which opened on 6 November and closed on 18 November. Rights trading ran from October 30 until 11 November.
13 month gap
2018 - 4 in total
29. Nufarm, September 2018: $303 million 3-for 19 PAITREO at $5.85 launched when the stock was at $6.64. Quoted a 90% institutional take-up but this excluded largest shareholder Sumitomo which received 50c a share from the shortfall offer which cleared at $6.35. No transaction just a profit warning due to the drought. The insto offer raised $238 million but there was no precise disclosure of how much came from the shortfall offer. Institutional offers Separately announced $31 million commitment from retail investors but the 6.2 million retail shortfall shares finished short so no compensation for non participants. UBS and Macquarie shared in a 1.9% fee. Another win for non-participating instos, including Sumitomo which was diluted from 18.4% down to below 16%. It was asked to pony up $55.7 million for 9.53 million shares but instead received $4.76 million in compensation and means the institutional shortfall offer was actually offering 12.63 million shares at a take up price of $74 million but which cleared at $80.3 million including the 50c premium. Retail investors had 13 days to consider the 66 page offer document which opened on October 4 and closed on October 17. Right trading ran for 9 days from October 1-9.
28. Transurban. September 2018: $4.2b 10-for-57 PAITREO at $10.80 with the stock trading at $12.06 before it was launched. There was also a $600m placement at $10.85. The $3 billion institutional offer was 96% subscribed with the $120 million shortfall clearing at a $1 premium of $11.80. The $1.222 billion retail offer offered rights trading from September 5 until September 11 and traded between 40c and $1.01 with a VWAP of 55c. The retail offer was 67.56% subscribed as 53,800 investors bought $827m new shares. The shortfall of 36.7m shares cleared at $11, raising $403.7 million and giving about 47,000 non-participants a 20c compensation payment collectively worth $7.34 million. Was disappointing to see the share price crash from $11.48 to $11.13 in the 2 days before the retail auction and then bounce back to close at $11.24 on the day after, giving bidders in the auction a one day gain of $8.8 million. Another win for instos who got $1 versus 20c, but confirms that was better for retail to exit on market. In hindsight, Transurban should have pre-sold some of the retail shortfall. Retail investors had 11 days to consider the 100 page offer document which opened on September 7 and closed on September 18. Right trading only ran for 6 days from September 5 until September 11.
6 month gap.
27. APA. March 2018: $500m 1-for-17 at $7.70. The $288m institutional offer was 96% subscribed and the shortfall cleared at $8.00 giving 30c to non-participants. The $212 million retail offer was 47% subscribed with 19,800 of the 75,000 security holders buying new units worth $102 million, leaving a $110 million shortfall which cleared at $7.75, giving non-participating retail investors 15c so another win for institutions. No disclosure provided of rights trading, despite request. Retail investors had 12 days to consider the 58 page offer document which opened on March 2 and closed on March 15. Retail rights trading ran from February 26 until March 7.
1 month gap
26. Woodside: February-March 2018: $2.5 billion 1-for-9 at $27. The $1.57 billion institutional offer was 90% subscribed and the shortfall cleared at $29.60 giving $2.60 to non-participants. The $930 million retail offer retail offer opened on February 21 and rights trading ran from February 19 until February 28 with the shortfall auction scheduled for March 12. Given the market weakness in recent days, the rights have never traded above the $2.60 which non-participating institutions received so this looks like an offer where institutions will finish in front of retail. Indeed, retail shareholders only received $1.60 so a clear win for institutions. The VWAP for rights trading was $1.80 so shareholders did better exiting on market. Retail investors had 14 days to consider the 60 page offer document which opened on February 21 and closed on March 7. Rights trading ran from February 19-28.
2017 - 4 in total
25. Transurban: December 2017-January 2018: $1.9 billion 3-for-37 at $11.40. The $1.35 billion institutional offer was 94% subscribed and the shortfall cleared at $12.50 giving $1.10 to non-participants. Trading ran from December 15 to January 18. The $550 million retail offer closed on January 24 with the shortfall auction comprising 13.6 million shares which delivered 50c in compensation to non-participants so a win for the institutions. Retail investors had 35 days to consider the 84 page offer document which opened on December 19 and closed on January 24. Rights trading ran from December 15 until January 17.
24. Nufarm: October-November 2017: $446 million 2-for-9 at $7.50. The $338m institutional offer was 95% subscribed (excluding Sumitomo) and the shortfall cleared at $8.50 giving $1 to non-participants. The $108 million retail offer attracted $85 million in applications or a healthy 77% take-up, leaving a $26m shortfall which cleared at $8.75, giving non-participating retail investors $1.25, so a win for retail. Retail investors had 15 days to consider the 72 page offer document which opened on October 31 and closed on 15 November. Rights trading ran from October 27 until November 8.
23. Link: July-August 2017: $883 million 4-for-11 at $6.75. The $700 million institutional offer was 98% subscribed and the shortfall cleared at $7.70. The $183 million retail offer was 85% subscribed and the 4.1m share retail shortfall did 15c better than the institutional shortfall, clearing at $7.85, delivering $1.10 back to non-participants so a win for retail. Retail investors had 13 days to consider the 100 page offer document which opened on July 5 and closed on July 13.
22. Downer EDI: March-April 2017: $1.011 billion 2-for-5 offer at $5.95. The $757 million institutional offer was only 66% subscribed and the shortfall failed to clear, delivering no compensation to non-participants. The $254 million retail offer also finished with barely any subscriptions as the under-writers finished up with $250.5 million worth of stock and non-participants received no compensation so this was a draw. Retail investors had 13 days to consider the 68 page offer document which opened on March 30 and closed on April 11.
2016 - 3 in total
21. Boral: November-December 2016: $1.6 billion 1-for-2.2 at $4.80, plus a $450m placement at $4.80, which was a big discount on the previous close of $6.15. The $1.03 billion accelerated institutional component was 91% subscribed with the shortfall shares clearing at $5.25 as non-participants received 45c. The $484m retail offer was only 50% subscribed with $242 million in acceptances. The 51 million share shortfall cleared at $5.15, returning 35c to non-participants so this was another win for instos. Retail investors had 11 days to consider the 107 page offer which opened on November 30 and closed on December 9.
After 20 deals it was 7 wins for retail 9 wins for instos and 4 draws
20. JB Hi-Fi: September-October 2016: $394 million 1-for-6.6 at $26.20. The $259 million institutional component was 94% subscribed with the 593,000 share shortfall clearing at $30.25 delivering $4.05 to non-participants. The $135 million retail component was 67% subscribed and the shortfall of 1.7 million entitlements cleared at $29.40, giving non-participants $3.20, so a win for the instos. Retail investors had 10 days to consider the 60 page offer which opened on September 21 and closed on September 30.
19. Vocus: June-July 2016: $453 million 1-for-8.9 at $7.55 on top of a $202 million placement at $8.42. The $230 million institutional component of the entitlement offer was 97% subscribed with the shortfall clearing at $8.42 delivering 87c to non-participants. The $220 million retail component was 69% subscribed and the shortfall of 9 million entitlements cleared at $8.42, giving non-participants 95c each, so a win for retail. Retail investors had 12 days to consider the 64 page offer document which opened on July 7 and closed on July 18.
2015 - 8 in total
18. Transurban: November-December 2015: $1.025 billion 1-for-18 at $9.60. The $738 million institutional component was 90% subscribed with the 7.7m shortfall clearing at $10.10, delivering 50c to non-participants. The $287 million retail offer had 8 days of rights trading and was open for 12 days. There was a 70% take-up rate and the shortfall of 9 million entitlements cleared at 30c, giving a win to the instos. Retail investors had 13 days to consider the 80 page offer document which opened on December 3 and closed on December 15.
17. Santos: November 2015: $2.5 billion 1-for-1.7 PAITREO at $3.85, plus a $500m placement at $6.80. The $1.17 billion accelerated institutional component was 86% subscribed with the 42.5m shortfall shares clearing at $4.60 in what was a $196m share sale as non-participants received 75c. The $1.35b retail offer closed 57% subscribed with $775 million worth of stock taken up. The 152m renounced retail offer shares cleared at $4.10, returning 35c to non-participants. Instos were the winner with 50c more compensation. Retail investors had 14 days to consider the 70 page offer document which opened on November 17 and closed on November 30.
16. Origin Energy, Oct-Nov 2015: $2.5 billion 4-for-7 raising at $4. $1.35 billion insto offer was 92% subscribed with $108m shortfall clearing at $5.20, returning $1.20 to non-participants. $1.2 billion retail offer 67% subscribed and 100m shortfall shares fetched $5.35, returning a premium of $1.35. This hefty $535m raising sold at a 5.1% discount given the stock closed at $5.64 the day before. Retail were the winner with 15c more compensation. Retail investors had 14 days to consider the 76 page offer document which opened on October 13 and closed on October 26.
15. Treasury Wine Estates, Oct-Nov 2015: 2-for-15 at $5.60 to raise $486 million. 89% take-up of $368 million institutional offer with $41 million shortfall clearing at $7.10. The $119 million retail offer was 57% subscribed and the 9.1m shortfall shares cleared at $7.16, returning $1.16 to non-participants, so a win for retail who got an extra 6c. Retail investors had just 9 days to consider the 86 page offer document which opened on October 26 and closed on November 4.
14. Westpac, Oct-Nov 2015: $3.5 billion 1-for-23 at $25.50. $1.6 billion insto offer was 95% subscribed with $80 million shortfall clearing at $30, returning $4.50 to non-participants. $1.9 billion retail offer closed on November 11 with 70% take-up as shortfall auction of 22.7 million entitlements on November 16 raised $670 million, returning $92 million or $4 per entitlement to non-participants. Instos got an extra 50c. Retail investors had 19 days to consider the 76 page offer document which opened on October 23 and closed on November 11.
2 month gap
13. CBA, August-September 2015: $5.1 billion 1-for-23 raising at $71.50. $2.1 billion institutional component was 90% subscribed and shortfall cleared at $78, returning $6.50 to non-participants. $3 billion retail offer was 50% subscribed and raised $1.5 billion. Shortfall of $1.5 billion cleared at $73.50 returning $2 to non-participating retail investors, so a win for the instos who got an extra $4.50 in compensation. Retail investors had 16 days to consider the 48 page offer document which opened on August 24 and closed on September 8.
3 month gap
12. NAB, May-June 2015: $5.5 billion raising at $28.50. $2.7 billion institutional component was 97% subscribed and $100 million shortfall cleared at $33.80, returning $5.30 to non-participants. $2.8 billion retail offer was 72% subscribed with $2.04 billion raised. Shortfall of 28.5m shares cleared at $31.60, returning $3.10 to non-participating retail investors, so a win for the instos who got an extra $2.20 in compensation. Retail investors had 19 days to consider the 86 page offer document which opened on May 13 and closed on June 1.
3 month gap
11. Tabcorp, Feb-March 2015: $236 million 1-for-12 raising at $3.70. Institutional offer 92% subscribed with 3.2m share shortfall clearing at $4.51, returning 81c. Retail shortfall of 7.7m shares cleared at $4.52, returning 82c to non-participants, so a win for retail by 1c. Retail investors had 15 days to consider the 68 page offer document which opened on February 16 and closed on March 2.
6 month gap
2014 - 2 in total
After 10 deals it was 3 retail wins, 3 insto wins and 4 draws
10. Arrium, Aug-Sept 2014: $754m raising including $656m 1-for-1 raising at 48c. $367 million institutional entitlement offer was supported by 77% but shortfall cleared at offer price of 48c so no compensation. $290m retail component only attracted about $12m in applications and shortfall failed to clear, going to the under-writers. Everyone a loser, especially under-writers and instos who participated, but no winner on shortfall sales. Retail investors had 16 days to consider the 76 page offer document which opened on September 22 and closed on October 8.
9. AGL, Sept 2014: $1.23 billion 1-for-5 offer at $11. Institutional component raised $516m with 95% take-up. 2.3 million shortfall shares cleared at $2.85. 56,000 retail shareholders took up $500m or 70% of retail offer. The 19.7 million retail share shortfall cleared at $2.25 so a win for the instos by 60c. Retail investors had 22 days to consider the 80 page offer document which opened on August 26 and closed on September 15.
3 month gap
2013 - 2 in total
8. ALS, July 2013: $246m 1-for-11 at $7.80. $112m raised in institutional component with 92% take-up as shortfall cleared at 95c. $134m retail offer had healthy 78% participation rate and shortfall also cleared at 95c, so no winner. Retail investors had 21 days to consider the 74 page offer document which opened on July 22 and closed on August 12.
1 month gap
7. ASX, June 2013: $553 million 2-for-19 at $30. Institutional component of $267m with 96% take-up as shortfall cleared at $3.70. $286 million retail offer had 75% take-up with $3.40 clearing price in bookbuild, so a win for instos by 30c. Retail investors had 18 days to consider the 66 page offer document which opened on June 17 and closed on July 5. Rights trading ran from June 14-28.
1 year gap
2012 - 2 in total
6. Brambles, June 2012: $450m 1-for-20 at $6.05. Institutional offer raised $333m with 83% take-up rate. Shortfall of 9.2m shares cleared at 45c. Retail offer raised $68m with 61% take-up rate. 7.8m share retail shortfall cleared at 25c. A win for instos by 20c. Retail investors had 21 days to consider the 66 page offer document which opened on June 8 and closed on June 29. Rights trading ran from June 7 until June 22 and the offer was under-written by UBS and Merrill Lynch.
1 month gap
First 5 saw 3 retail wins and two draws.
5. AGL, May 2012: $904 million 1-for-6 at $11.60. The $356m institutional offer had a 95% take-up and the 1.4m shortfall cleared at $2.85. 60,000 retail shareholders applied for $404m worth of shares in the $532m retail offer with a 75% participation rate. The $128m retail shortfall cleared at $2.90. A win for retail by 5c. Retail investors had 21 days to consider the 78 page offer document which opened on May 30 and closed on June 19. Rights trading ran for two weeks from May 29 until June 12.
5 month gap
2011 - 4 in total
4. Bluescope Steel, Nov 2011: $600m 4-for-5 at 40c. $338m institutional offer had 83% take up with 175m share shortfall clearing at 40c offer price. The $260m retail offer had a 48% take-up. The large shortfall cleared at 40c, so no compensation to non-participants and no winner. Retail investors had 16 days to consider the 76 page offer document which opened on November 29 and closed on December 14. Rights trading ran for two weeks from November 24 until December 7. Under-written by Credit Suisse.
1 month gap
3. Super Retail Group, Oct 2011: $334 million 9-for-19 at $5.34 to fund Rebel acquisition. $282m institutional offer only 47% subscribed and 28m share shortfall failed to clear at offer price. $50m retail offer had 46% take-up and retail shortfall of 4.3m shares cleared at $5.38, a premium of 4c, so win for retail by 4c. Retail investors had 25 days to consider the 70 page offer which opened on October 21 and closed on November 16. Rights trading ran for 19 days from October 20 until November 9. Under-written by Macquarie and RBS Capital.
1 month gap
2. Goodman Fielder, Sep 2011: $259 million 5-for-12 at 45c. $190m institutional offer 95% taken up and 30m share shortfall cleared at 50c. $69m retail offer was 60% taken up and 60.6m retail shortfall cleared at 50c, so no winner. Retail investors had 17 days to consider the offer which opened on October 4 and closed on October 21 and rights trading ran from September 30 until October 14. Greenhill Calliburn were financial advisers and Freehills did the legals.
6 month gap
1. Origin Energy, March 2011: trail-blazing $2.3 billion 1-for-5 at $13. $1.13 billion institutional offer with 95% take-up as shortfall cleared at $2. $1.17 billion retail offer with 79% take-up as retail shortfall cleared at $2.80, so a win for retail by 80c. Retail investors had 23 days to consider the 98 page offer document which opened on March 21 and closed on April 13. Rights trading ran from March 18 until April 6 or some 19 days. Merrill Lynch was credited with developing the PAITREO but Macquarie and JP Morgan helped with the under-writing.
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