Skip to Content
scroll

Does MM like the AIZ rights issue?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked

Does MM like the AIZ rights issue?

James, I am a longer term holder of AIZ. I anticipated they were going to do a capital raise as this was published, but was not expecting the offer price at a 61% discount to the market price! What are the benefits of taking taking up the offer rights of 2:1 for shares held be please? Would it be prudent to take up the rights entitlement? I am anticipating the share price to drop to at least the offer price unless I have missed something? Confused

Answer

Hi Bernie,

This $1bn capital raise looks set to be at a maximum of a 35% discount to its previous price, a hefty discount due to the large size of the raise and clearly deemed necessary to prove successful.  However the stocks trading down less than 12% for the week so don’t panic!

This is not one for MM as we prefer our position in Qantas (QAN) but with the strengthened balance sheet AIZ should be able to push forward through 2022.

 

 

chart
image description
Air New Zealand (AIZ)
image description

Relevant suggested news and content from the site

Back to top