bankelele
Pressure is on for banks to raise capital and Diamond Trust are back to ask their shareholders to chip in. In November 2006 they raised 735 million, and this time they are set to raise 1.6 billion ($24 million)
What has changed
Then ; Now
Nov ’06 ; Nov ‘07
New shares 15.5 million ; 23.3 million
Price 50/= ; 70/= (a 20% discount each time)
Ratio 1:8 ; 1:6 (1 new share for 6 owned)
Result: oversubscribed; ? (Likely to be the same)
cost of the offer
Budget:2006 offer - 41.6 million ; 2007 offer - 54.7 million
What costs more: :
Advertising - up 250% (2.5m)
CMA approval – up 104% (4m)
Placing commission – up 100% (24.5m)
Printing & postage - up 29% (9m)
Registrar & data - up 29% (3m)
Legal fees – up 16% (4m)
Costs less
NSE listing fees – down 436% (0.09m)
Reporting accountant fees – down 200% (2m)
Sponsoring stockbroker fee – down 50% (1.74m)
Unchanged
NSE listing fees (0.5m), PR activities (0.5m)
calendar
record date 16/10, rights start trading 2/11, last day trade rights 12/11, last date to pay for rights 27/11, new share trade 11/12, new share certificates 18/12.