ASX Shares QV Equities Share Purchase Plan - 2017 (QVE)

Hi all

QVE has announced their SPP intending to raise $35 million.

It opens 7 March and closing date is 24 March 2017. The issue price for the new SPP is $1.22.

Documents attached.

 

The offer price is about half way between the current price and current NTA. Doesn't seem spectacular value to my mind, interested in more experienced views

Thanks.

 

I have been thinking about this a fair bit as well. I am tempted but can't make up my mind if the issue price is enough of a discount to bite.

I was looking at AFIC's half-yearly report this morning and was going through their list of investments. A great many of the ex-20 portfolio held by QVE is represented in the AFIC portfolio too. Including MIR and MLT!! I am fairly certain it will be the case with MLT and ARG too (inclusion of small caps).

Would love to hear thoughts from others too.

 

There is also the option to take it up and then dump shares purchased in the spp for a profit, though the SPP may cause the price to drop.

Also if concern is CGT in the plan above. Not sure if I could elect to sell my new shares at a modest profit or would need to sell the ones I originally got which would mean a lot more tax incurred

 

I am looking at taking up the offer in full. Really chasing some exposure away from the big banks etc that make up the majority of ARG, MLT etc. Although still a premium to NTA compared to the alternatives, say MIR it isn't too bad.

 

@austing
I am keen to hear your thoughts/plans for this too.

 

I think this shows good stewardship. They're raising money above NTA which means existing shareholders won't get diluted, but it's still far cheaper than their current share price so makes it a more attractive entry point for new money.

(Such as myself, who foolishly sold his QVE shares too early around 1.26... but now doesn't have a holding and thus can't participate. Can only hope the share price falls in the direction of the SPP price...)

 

A question on the logistics of the SPP.

So if I take this offer up (or any other SPP for that matter), I will Bpay the required monies (up to $15K). Let’s assume that I get allocated the entire amount in QVE shares. How does it practically work from there?

I assume that the shares will be registered on the share register (link market services) and dividends (NOT interim dividend announced 15 Feb) will continue to be paid into the bank account I have nominated. However, the bank account nominated for me is the CDIA account with Commsec.

Also, in this instance, I am bypassing Commsec by purchasing QVE through Bpay. Will this mean that my SPP allocation will not be registered on my Commsec holding? Does it need to be transferred back to Commsec (CHESS holding)? The downside of not doing it as I can see is that the portfolio value displayed on Commsec will be inaccurate as the SPP holding with QVE will not be reflected.

Can somebody who has been through this process please share some insights into how it all works post allocation?

 

There's at least one guy planning on taking the SPP up - the guy with a sell order in the queue at a limit of 1.345 for 12,295 shares ($15000/$1.22=12,295)

 

You will BPay the monies and the shares will be added to your existing holdings in your Comsec account, you should see them on 10 April when you log into Comsec. You will have to update your cost base for the shares manually in Comsec though but that is done easily.

 

Your allocation will appear in your Commsec account, chances are it will be oversubscribed. Therefore you will get a partial refund.
I noticed that the Share price was down sharply today after the announcement.

 

Well explained, I think my earlier comments show my inexperience and rush to judge the offer.

 

Im not an expert at all myself, as you know!

Though I think I should go a bit further than "not be diluted"... as far as I can tell, existing shareholders will have extra value added through any capital raising done above NTA

 

Anyone here running a spreadsheet to track QVE's premium to NTA?

 

Month end NTA should be out this week.

 

See attached: Anton T in the AFR talking about bank stocks being overvalued

 

There is going to be a QVE Webinar about the upcoming SPP tomorrow (7 March 2017) between 11 and 11.45 AM.

Unfortunately, I have a day job to hold on to. Anybody else have a bit of free time to see what QVE has to say and take some (very brief) notes and share it amongst your LIC brothers and sisters?

 

http://www.asx.com.au/asxpdf/20170302/pdf/43ghk9q7hk9h0r.pdf

 

Update: If anybody has questions on the QVE SPP, please send it to [email protected] before the webinar.

 

Just because I'm not working tomorrow doesn't mean I'm a bum that can't hold down a job. Not sure if I'll be out of bed by 11 though, so early