Frasers Property (formerly: Frasers Cpt (FCL))

[Aldar]

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 ?

For e.g. FCL.

If TCC were to inject assets into FCL, FCL may opt to call for a rights issue to raise cash to pay for the assets.

TCC may opt not to participate in the rights issue and hence pare down its holdings in FCL while receiving cash from the injection of assets.