Placings

Share issues – And An Interesting Rule

Spring is in the air, and companies are clearly in a mood to raise cash. A lot of these have been share placings but the reasons given have been...

Cornhill Capital Fined Over AIM Placing

Cornhill Capital have been fined £210,000 by the London Stock Exchange (LSE) over a placing of shares in New World Oil & Gas on AIM. Cornhill was acting as a broker to the company which planned to place some 2 billion shares. That was twice the number already in issue. Cornhill sold shares to its private clients in advance of the placing with the sales to be fulfilled from the placed shares. But the placing required a vote of shareholders and ...

Placings and Open Offers and How to Do Them – St Ives and Tritax

One of the things that annoys private investors is when a company does a placing of shares. This can be for a number of reasons such as the company needing funds for an acquisition, or simply because the company is fast running out of cash and wishes to stave off financial distress. Because of the EU mandated Prospectus Directive, a full Rights Issue where all shareholders can participate in the share issuance and hence avoid dilution of their stake, does require an ...

CentralNic Placing Annoys Private Investors

This morning (8/12/2015), CentralNic Group announced the acquisition of Australian company Instra Group. Total cost is AU$33 million payable in cash and shares which will be supported by a mixture of debt and the issuance of new shares in a placing. Overall the new shares to be issued to the sellers and to institutional investors will represent 31% of the new overall equity so there is substantial dilution of existing investors taking place. But what is likely to annoy private investors is ...