Frasers Property (formerly: Frasers Cpt (FCL))

[felixleong]

I also think they are more likely to sell a stake to increase the public float instead of placement
for placement, new shares are created and the $$ raised goes to the company, so they have to take an extra step to get the $$ out of FCL into their pockets
for selling of stakes, the no new shares are created and the $$ is passed directly to the thais (so I think this route is more likely to be taken)

The thais are known to be savvy, don't think they will wanna cash out at such low levels. My feel is $1.60-2.00 (but hey dun listen to me, I'm wrong half the time lol ^_^)

Care to explain why for placement , new shares are created ?

Depends on the structure of the placement.
Example for a rights issue, new shares are created and existing shareholders can participate by putting in $$

for placement its the same except that existing shareholders do not participate, $$ is raised from new shareholders and new shares are given to them

There are other forms of placements such as existing major shareholder selling their stake to another person/company, just the pass of shares and no new shares created.

Thought we were discussing increase of free floats through paring down of holding from major shareholder, Why the right issue ?

I was just giving examples, but like what I said before I think the Thais will likely sell their stakes to institutional investors, thus changing the public float from 15% to maybe something like 30%? However given the current poor market sentiment its not likely for the time now, they might wanna look at a range of $1.60-$2.00 to consider selling down their stakes in FCL and bring the cash home to pay off debts, cheers ^^