share placings
Discussion
Essentially it's a platform that allows individuals to participate in equity raises alongside institutions, allowing access to deals on terms that you wouldn't always be able to get. You don't necessarily have to own the shares already, they will often place open to anyone.
It's far from a no brainer as shares will often retract towards the placing price, so in reality you might not get the discount you were hoping for. For example, I subscribed to the SolGold placing last night, and the share has dropped to the placing price.
It's far from a no brainer as shares will often retract towards the placing price, so in reality you might not get the discount you were hoping for. For example, I subscribed to the SolGold placing last night, and the share has dropped to the placing price.
heres one live now - how do you know if its good or not if they dont have the price?!
SEGRO plc
RETAIL OFFER VIA PRIMARYBID.COM
SEGRO plc ("SEGRO" or the "Company") is pleased to announce a retail offer via PrimaryBid of new ordinary shares (the "Retail Shares") of 10 pence each in the capital of the Company (the "Retail Offer").
As separately announced today, the Company is conducting a non-pre-emptive placing of new ordinary shares (the "Placing Shares") in the capital of the Company (the "Placing") through an accelerated bookbuilding process (the "Bookbuilding Process"). The price at which the Placing Shares are to be placed (the "Placing Price") will be determined at the close of the Bookbuilding Process.
The issue price for the Retail Shares will be equal to the Placing Price.
Reasons for the Retail Offer
Whilst the Placing has been structured as a non-pre-emptive offer so as to minimise cost, time to completion and use of management time at an important time for the Company, the Company values its retail investor base and recognises the importance of pre-emption rights in the UK listed company environment.
After consideration of the various options available to it, the Company believes that the separate Retail Offer, which will give retail investors the opportunity to participate in the Company's equity fundraising alongside the Placing, is in the best interest of shareholders, as well as wider stakeholders in SEGRO.
The net proceeds of the Retail Offer will be used to allow SEGRO to take advantage of additional investment opportunities across the UK and Continental Europe through further, mostly pre-let, development projects together with acquisitions of land and investment assets, further details on which are set out in the Company's announcement regarding the Placing, released earlier today.
Details of the Retail Offer
Members of the public in the United Kingdom may participate in the Retail Offer by applying exclusively through the www.PrimaryBid.com platform and the PrimaryBid mobile app available on the Apple App Store and Google Play. PrimaryBid does not charge investors any commission for this service.
The Retail Offer will be open to retail investors from 4:41 p.m. on 9 June 2020. The Retail Offer will close at the same time as the Bookbuilding Process is completed.
Subscriptions under the Retail Offer will be considered by the Company on a "first come, first served" basis (with preference to be given to the Company's existing retail investors), subject to conditions which are available to view on PrimaryBid.com. The Company, in consultation with PrimaryBid, reserves the right to scale back any order at its discretion.
No commission will be charged to investors on applications to participate in the Retail Offer made through PrimaryBid. It is important to note that once an application for the Retail Shares has been made and accepted via PrimaryBid, that application is irrevocable and cannot be withdrawn.
It is a term of the Retail Offer that the total value of Retail Shares available for subscription at the Placing Price does not exceed €8 million equivalent. Accordingly, the Company is not required to publish (and has not published) a prospectus in connection with the Retail Offer as it falls within the exemption set out in section 86(1)(e) and 86(4) of the Financial Services and Markets Act 2000. The Retail Offer is not being made into any jurisdiction where it would be unlawful to do so. In particular, the Retail Offer is being made only to persons who are, and at the time the Retail Shares are subscribed for, will be outside the United States and subscribing for the Placing Shares in an "offshore transaction" as defined in, and in accordance with, Regulation S ("Regulation S") under the U.S. Securities Act of 1933, as amended (the "Securities Act"). Persons who are resident or otherwise located in the United States will not be eligible to register for participation in the offer through PrimaryBid or subscribe for Retail Shares.
The Retail Shares, if issued, will be fully paid and will rank pari passu in all respects with the existing ordinary shares of the Company, including the right to receive all dividends and other distributions declared, made or paid after the date of issue.
Application will be made for the Retail Shares to be admitted to the premium listing segment of the Official List of the Financial Conduct Authority and to be admitted to trading on the main market for listed securities of the London Stock Exchange plc (together, "Admission").
Settlement for the Retail Shares and Admission is expected to take place on or before 8.00 a.m. on 12 June 2020. The Retail Offer is conditional, among other things, upon Admission becoming effective and the placing agreement entered into between the Company, Merrill Lynch International and UBS AG London Branch not being terminated in accordance with its terms.
For further details, please refer to www.PrimaryBid.com. The terms and conditions on which the Retail Offer is made, including the procedure for application and payment for the Retail Shares, is available to all persons who register with PrimaryBid.com.
It should be noted that a subscription for the Retail Shares and any investment in the Company carry a number of risks. Investors should make their own investigations into the merits of an investment in the Company. Nothing in this announcement amounts to a recommendation to invest in the Company or amounts to investment, taxation or legal advice. Investors should take independent advice from a person experienced in advising on investment in securities such as the Company's ordinary shares if they are in any doubt.
This announcement should be read in its entirety. In particular, you should read and understand the information provided in the "Important Notices" section of this announcement.
The person responsible for arranging release of this Announcement on behalf of SEGRO is Elizabeth Blease.
For further information on the Announcement, please contact
SEGRO plc:
David Sleath, Chief Executive
Soumen Das, Chief Financial Officer
Elizabeth Blease, General Counsel and Group Company Secretary +44 (0) 20 7451 9080
PrimaryBid Limited:
James Deal
Kieran D'Silva +44 (0)20 3026 4750
Notes to Editors
About SEGRO
SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages 7.8 million square metres of space (84 million square feet) valued at £12.2 billion at 31 December 2019. Its assets are positioned strategically at locations in the UK and across London and the South-East and Midlands regions, while in Continental Europe it has developments in France, Germany, Italy, Poland, Spain, The Netherlands and the Czech Republic.
For 100 years SEGRO has been creating the space that enables extraordinary things to happen. From modern big box warehouses, used primarily for regional, national and international distribution hubs, to urban warehousing located close to major population centres and business districts, it provides high-quality assets that allow its customers to thrive.
See www.SEGRO.com for further information.
SEGRO plc
RETAIL OFFER VIA PRIMARYBID.COM
SEGRO plc ("SEGRO" or the "Company") is pleased to announce a retail offer via PrimaryBid of new ordinary shares (the "Retail Shares") of 10 pence each in the capital of the Company (the "Retail Offer").
As separately announced today, the Company is conducting a non-pre-emptive placing of new ordinary shares (the "Placing Shares") in the capital of the Company (the "Placing") through an accelerated bookbuilding process (the "Bookbuilding Process"). The price at which the Placing Shares are to be placed (the "Placing Price") will be determined at the close of the Bookbuilding Process.
The issue price for the Retail Shares will be equal to the Placing Price.
Reasons for the Retail Offer
Whilst the Placing has been structured as a non-pre-emptive offer so as to minimise cost, time to completion and use of management time at an important time for the Company, the Company values its retail investor base and recognises the importance of pre-emption rights in the UK listed company environment.
After consideration of the various options available to it, the Company believes that the separate Retail Offer, which will give retail investors the opportunity to participate in the Company's equity fundraising alongside the Placing, is in the best interest of shareholders, as well as wider stakeholders in SEGRO.
The net proceeds of the Retail Offer will be used to allow SEGRO to take advantage of additional investment opportunities across the UK and Continental Europe through further, mostly pre-let, development projects together with acquisitions of land and investment assets, further details on which are set out in the Company's announcement regarding the Placing, released earlier today.
Details of the Retail Offer
Members of the public in the United Kingdom may participate in the Retail Offer by applying exclusively through the www.PrimaryBid.com platform and the PrimaryBid mobile app available on the Apple App Store and Google Play. PrimaryBid does not charge investors any commission for this service.
The Retail Offer will be open to retail investors from 4:41 p.m. on 9 June 2020. The Retail Offer will close at the same time as the Bookbuilding Process is completed.
Subscriptions under the Retail Offer will be considered by the Company on a "first come, first served" basis (with preference to be given to the Company's existing retail investors), subject to conditions which are available to view on PrimaryBid.com. The Company, in consultation with PrimaryBid, reserves the right to scale back any order at its discretion.
No commission will be charged to investors on applications to participate in the Retail Offer made through PrimaryBid. It is important to note that once an application for the Retail Shares has been made and accepted via PrimaryBid, that application is irrevocable and cannot be withdrawn.
It is a term of the Retail Offer that the total value of Retail Shares available for subscription at the Placing Price does not exceed €8 million equivalent. Accordingly, the Company is not required to publish (and has not published) a prospectus in connection with the Retail Offer as it falls within the exemption set out in section 86(1)(e) and 86(4) of the Financial Services and Markets Act 2000. The Retail Offer is not being made into any jurisdiction where it would be unlawful to do so. In particular, the Retail Offer is being made only to persons who are, and at the time the Retail Shares are subscribed for, will be outside the United States and subscribing for the Placing Shares in an "offshore transaction" as defined in, and in accordance with, Regulation S ("Regulation S") under the U.S. Securities Act of 1933, as amended (the "Securities Act"). Persons who are resident or otherwise located in the United States will not be eligible to register for participation in the offer through PrimaryBid or subscribe for Retail Shares.
The Retail Shares, if issued, will be fully paid and will rank pari passu in all respects with the existing ordinary shares of the Company, including the right to receive all dividends and other distributions declared, made or paid after the date of issue.
Application will be made for the Retail Shares to be admitted to the premium listing segment of the Official List of the Financial Conduct Authority and to be admitted to trading on the main market for listed securities of the London Stock Exchange plc (together, "Admission").
Settlement for the Retail Shares and Admission is expected to take place on or before 8.00 a.m. on 12 June 2020. The Retail Offer is conditional, among other things, upon Admission becoming effective and the placing agreement entered into between the Company, Merrill Lynch International and UBS AG London Branch not being terminated in accordance with its terms.
For further details, please refer to www.PrimaryBid.com. The terms and conditions on which the Retail Offer is made, including the procedure for application and payment for the Retail Shares, is available to all persons who register with PrimaryBid.com.
It should be noted that a subscription for the Retail Shares and any investment in the Company carry a number of risks. Investors should make their own investigations into the merits of an investment in the Company. Nothing in this announcement amounts to a recommendation to invest in the Company or amounts to investment, taxation or legal advice. Investors should take independent advice from a person experienced in advising on investment in securities such as the Company's ordinary shares if they are in any doubt.
This announcement should be read in its entirety. In particular, you should read and understand the information provided in the "Important Notices" section of this announcement.
The person responsible for arranging release of this Announcement on behalf of SEGRO is Elizabeth Blease.
For further information on the Announcement, please contact
SEGRO plc:
David Sleath, Chief Executive
Soumen Das, Chief Financial Officer
Elizabeth Blease, General Counsel and Group Company Secretary +44 (0) 20 7451 9080
PrimaryBid Limited:
James Deal
Kieran D'Silva +44 (0)20 3026 4750
Notes to Editors
About SEGRO
SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages 7.8 million square metres of space (84 million square feet) valued at £12.2 billion at 31 December 2019. Its assets are positioned strategically at locations in the UK and across London and the South-East and Midlands regions, while in Continental Europe it has developments in France, Germany, Italy, Poland, Spain, The Netherlands and the Czech Republic.
For 100 years SEGRO has been creating the space that enables extraordinary things to happen. From modern big box warehouses, used primarily for regional, national and international distribution hubs, to urban warehousing located close to major population centres and business districts, it provides high-quality assets that allow its customers to thrive.
See www.SEGRO.com for further information.
In this case they were raising over £600m and the price isn't determined until the level of demand is established. I have no idea how that works on the institutional side where any commitment will be orders of mangitude greater than on the retail side! Looks like they got it done at 820p, so a 4.5% discount.
egomeister said:
Essentially it's a platform that allows individuals to participate in equity raises alongside institutions, allowing access to deals on terms that you wouldn't always be able to get. You don't necessarily have to own the shares already, they will often place open to anyone.
It's far from a no brainer as shares will often retract towards the placing price, so in reality you might not get the discount you were hoping for. For example, I subscribed to the SolGold placing last night, and the share has dropped to the placing price.
Slightly off topic, where do you see Nick Mather taking Solgold, production or full sale of the company? seems a lot of PI have had enough of the "this is going to production"It's far from a no brainer as shares will often retract towards the placing price, so in reality you might not get the discount you were hoping for. For example, I subscribed to the SolGold placing last night, and the share has dropped to the placing price.
snowy said:
Slightly off topic, where do you see Nick Mather taking Solgold, production or full sale of the company? seems a lot of PI have had enough of the "this is going to production"
I don't really have an answer to that yet! I only bought a small amount via the primary bid offering as much to test the buying process as my interest in the company. It seems a decent asset (I've seen pure gold plays out there with similar grades to this, and that's ignoring the copper), and I'm bullish on gold in particular so i'm as much backing the general trend as the company itself.Clearly mining assets take an age to get up and running, especially one as big as this with a big funding requirement so I'm not expecting much in the short term. I'll continue to research into it and decide what I ultimately plan to do with the holding over time.
Are you a shareholder? What are your thoughts?
egomeister said:
the price isn't determined until the level of demand is established. I have no idea how that works on the institutional side.
The promoter simply hawks it round the institutional market asking institutions and banks how much they would be willing to pay and for how many shares. This is used to build a book of information about the level of interest expressed - hence use of the word "bookbuilding" in the announcement. The promoter is trying to get as much as possible for the shares and the investors are trying to pay as little as possible. If all goes well the promoter is eventually able to identify a price at which he can shift all of the shares and then all participating institutions pay that same price irrespective of whether they may have originally said they would be willing to pay more. Essentially it's like an auction to sell 100 things at once to 50 people but with everyone in the room bidding prices for stated numbers until all the shares can be sold at once. Naturally the auctioneer is doing his best to keep the excitement going because he's on a fat fee and commission! As the announcement states, retail investors aren't actually "in" the placing process but are given the opportunity to ride on the back of the Placing price via the Retail Offer. It shifts a few additional shares, may help to generate interest and may well be underwritten. (i.e. If not enough retail investors sign up to take all the retail shares there may be an institution who has agreed to hoover them up - for a fat fee, of course).
Whichever way you get to participate in the new share issue the risk/reward is essentially the same - Will the share price rise or will it fall once trading begins? The likely benefit for retail investors is that, hopefully, the professional investors priced their bids (a) correctly, and (b) conservatively.
rockin said:
The promoter simply hawks it round the institutional market asking institutions and banks how much they would be willing to pay and for how many shares. This is used to build a book of information about the level of interest expressed - hence use of the word "bookbuilding" in the announcement. The promoter is trying to get as much as possible for the shares and the investors are trying to pay as little as possible. If all goes well the promoter is eventually able to identify a price at which he can shift all of the shares and then all participating institutions pay that same price irrespective of whether they may have originally said they would be willing to pay more. Essentially it's like an auction to sell 100 things at once to 50 people but with everyone in the room bidding prices for stated numbers until all the shares can be sold at once. Naturally the auctioneer is doing his best to keep the excitement going because he's on a fat fee and commission!
As the announcement states, retail investors aren't actually "in" the placing process but are given the opportunity to ride on the back of the Placing price via the Retail Offer. It shifts a few additional shares, may help to generate interest and may well be underwritten. (i.e. If not enough retail investors sign up to take all the retail shares there may be an institution who has agreed to hoover them up - for a fat fee, of course).
Whichever way you get to participate in the new share issue the risk/reward is essentially the same - Will the share price rise or will it fall once trading begins? The likely benefit for retail investors is that, hopefully, the professional investors priced their bids (a) correctly, and (b) conservatively.
Thanks for the explanation, it makes that it would be the best mechanism to ensure an orderly pricing rather than the promotor trying to determine the price. I guess they would also be liasing with the company regarding a minimum price they would accept, weighing up the compromise between discount and the bad PR of a failed placing.As the announcement states, retail investors aren't actually "in" the placing process but are given the opportunity to ride on the back of the Placing price via the Retail Offer. It shifts a few additional shares, may help to generate interest and may well be underwritten. (i.e. If not enough retail investors sign up to take all the retail shares there may be an institution who has agreed to hoover them up - for a fat fee, of course).
Whichever way you get to participate in the new share issue the risk/reward is essentially the same - Will the share price rise or will it fall once trading begins? The likely benefit for retail investors is that, hopefully, the professional investors priced their bids (a) correctly, and (b) conservatively.
egomeister said:
I don't really have an answer to that yet! I only bought a small amount via the primary bid offering as much to test the buying process as my interest in the company. It seems a decent asset (I've seen pure gold plays out there with similar grades to this, and that's ignoring the copper), and I'm bullish on gold in particular so i'm as much backing the general trend as the company itself.
Clearly mining assets take an age to get up and running, especially one as big as this with a big funding requirement so I'm not expecting much in the short term. I'll continue to research into it and decide what I ultimately plan to do with the holding over time.
Are you a shareholder? What are your thoughts?
I've been invested in Solgold since 2013, seen it raise and fall, been diluted along the way, a few things keep me invested, i cant see BHP allowing solgold to take it to production and hence when BHP are out of their lock in, some time in the middle of October, then hopefully we might see some MAClearly mining assets take an age to get up and running, especially one as big as this with a big funding requirement so I'm not expecting much in the short term. I'll continue to research into it and decide what I ultimately plan to do with the holding over time.
Are you a shareholder? What are your thoughts?
Solgold has an excellent portfolio of other concessions in Ecuador, and hence with the current funding it should kick start some drilling on at least 2 or 3 other area's, if we can discover a large deposit, before BHP are released, then Solgold will be taken out, no current major mining company will want a new competitor, the current in the ground value of Cascabel/Apala is approx. $100B, and the company sit with a MCAP of less than £500m
Solgold should get the PFS out by the end of September, just hoping that will be the starting point of a bidding war
Good luck with your investment, i currently hold 700k shares
snowy said:
I've been invested in Solgold since 2013, seen it raise and fall, been diluted along the way, a few things keep me invested, i cant see BHP allowing solgold to take it to production and hence when BHP are out of their lock in, some time in the middle of October, then hopefully we might see some MA
Solgold has an excellent portfolio of other concessions in Ecuador, and hence with the current funding it should kick start some drilling on at least 2 or 3 other area's, if we can discover a large deposit, before BHP are released, then Solgold will be taken out, no current major mining company will want a new competitor, the current in the ground value of Cascabel/Apala is approx. $100B, and the company sit with a MCAP of less than £500m
Solgold should get the PFS out by the end of September, just hoping that will be the starting point of a bidding war
Good luck with your investment, i currently hold 700k shares
Somewhat more invested than me then!Solgold has an excellent portfolio of other concessions in Ecuador, and hence with the current funding it should kick start some drilling on at least 2 or 3 other area's, if we can discover a large deposit, before BHP are released, then Solgold will be taken out, no current major mining company will want a new competitor, the current in the ground value of Cascabel/Apala is approx. $100B, and the company sit with a MCAP of less than £500m
Solgold should get the PFS out by the end of September, just hoping that will be the starting point of a bidding war
Good luck with your investment, i currently hold 700k shares
I agree they have some great looking resources (but don't 50% of mining explorers claim a world class asset anyway!) Substantional holdings from BHP and Newcrest suggest there is some truth in it though. The trick is getting it out of the ground economically though...
I might have some time on my hands when I finish this contract at the end of the month so I will probably spend July as a mining analyst
egomeister said:
Somewhat more invested than me then!
I agree they have some great looking resources (but don't 50% of mining explorers claim a world class asset anyway!) Substantional holdings from BHP and Newcrest suggest there is some truth in it though. The trick is getting it out of the ground economically though...
I might have some time on my hands when I finish this contract at the end of the month so I will probably spend July as a mining analyst
Newcrest have somewhat fallen out with the BoD over the way Solgold has done a royalty Financing Package of US$100m from Franco-Nevada for the Alpala Project, this will finance Alpla through to BFSI agree they have some great looking resources (but don't 50% of mining explorers claim a world class asset anyway!) Substantional holdings from BHP and Newcrest suggest there is some truth in it though. The trick is getting it out of the ground economically though...
I might have some time on my hands when I finish this contract at the end of the month so I will probably spend July as a mining analyst
There is a lot of upshot in this project, but i see the main benefit in the copper in the long run, as there is predicted to be a copper shortage come 2025, with the world moving towards electrification the copper demand will increase, i just see copper plays as a win win at the moment long term, but as you have said it takes a long time to move from a deposit discovery to production, 10 years or more if it is a massive deposit, Alpala is not expected to be a producing mime until 2025
snowy said:
Newcrest have somewhat fallen out with the BoD over the way Solgold has done a royalty Financing Package of US$100m from Franco-Nevada for the Alpala Project, this will finance Alpla through to BFS
There is a lot of upshot in this project, but i see the main benefit in the copper in the long run, as there is predicted to be a copper shortage come 2025, with the world moving towards electrification the copper demand will increase, i just see copper plays as a win win at the moment long term, but as you have said it takes a long time to move from a deposit discovery to production, 10 years or more if it is a massive deposit, Alpala is not expected to be a producing mime until 2025
The Franco-Nevada deal was one of the things that convinced me to go for it There is a lot of upshot in this project, but i see the main benefit in the copper in the long run, as there is predicted to be a copper shortage come 2025, with the world moving towards electrification the copper demand will increase, i just see copper plays as a win win at the moment long term, but as you have said it takes a long time to move from a deposit discovery to production, 10 years or more if it is a massive deposit, Alpala is not expected to be a producing mime until 2025
I figured they would have done the due diligence if they were financing for a royality, so I took it as a good pointer to help me decide at short notice for the Primary Bid placing.
It sounds like you are well versed on the shareholder politics, I've got some catching up to do!
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