Wednesday, November 07, 2007

Diamond Trust; Rights Reloaded

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)

NSE listing fees (0.5m), PR activities (0.5m)

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.


Jakarumba said...

Hi Banks, IO believe you are still holding DTB in your stable. Have you received your Provisional allotment letter. I have not and getting worried. Yesterday I called their offices and they told me to hold on, I would have it in my box within two days.

coldtusker said...

Posta is still posta.... well, there has been an improvement in postal services but... not enough!

bankelele said...

Jakarumba: Yes I got my PAL. They are coming in the mail on different dates though. Prepare to pay for 1/6th of your shares by 27/11

Coldtusker: Posta is posta. Companies have amended their by-laws but I am yet to see one that will mail the prospectus in PDF instead of expensive postal way


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