tritax big box (bbox.l) just announced an IPO of 257,352,941 new shares (odd random figure) at 136p
currently they have 1,206,205,153 and a share price of 140p (It was at 148p a few days ago)
I'm fairly new to trading so i almost certainly missing something, but that looks like a terrible deal. By my calculation thats a 21% dilution of shares for 4p discount
someone talk me through what i'm missing
funny thing is prior to this offer I was thinking of buying shares, I liked the company but backed off due to the price to book value
http://www.stockopedia.com/share-prices/tritax-big-box-reit-LON:BBOX/
Briefly, it's not an IPO but a placing and open offer.
The number of share equates to £200m at the offer price.
The share price at the offer price is above nav so there is no dilution.
If you want exposure to large warehousing then this is about the only practical way to get it. They know their market inside out. Great covenants, reasonable divis, matched funding etc etc. Not sure what might happen a few years down the road with rate rises etc though.
hth
