Is MM thinking of increasing your APA holding through SPP, or in the market?

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Question asked 26/08/2023

Is MM thinking of increasing your APA holding through SPP, or in the market?

Hi MM, You said in today's morning email that you intend to increase your position in APA. Do you intend to do so by way of the SPP rather than buying on market? Or perhaps a combination of the two. In that respect, are you concerned about not being able to obtain your desired holding in the SPP if it is oversubscribed? By what percentage would you - and holders in general - need to increase your(/their) holding in APA by in order to avoid dilution? Finally, do you know yet by what percentage you would like to increase your holding in APA (via the SPP and/or on-market) above your current 4% weighting? Thanks, Darren

Answer

Hi Darren,

APA has already raised $675mn at $8.50 from institutions – it closed at $8.70 representing a 2.3% premium to the raise on Friday, a fresh 2-year low.

The SPP will be launched for eligible security holders on Thursday and you will be able to subscribe for up to $30,000 of new securities under the SPP at the lower of the Placement Price, and a 2% discount to the 5-day VWAP of APA’s securities up to, and including, the closing date of the SPP, and free of any brokerage or transaction costs.

It may not be a significant difference, but the SPP looks likely to be the better of the 2 options and we do intend to participate. If we do increase our 4% holding in our Active Income Portfolio further, it would likely be to 5 or 6% through a combination of SPP and on market buying.

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APA Group (APA)

LAST UPDATED 25/08/2023 11:31

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