In reply to Chrissy
Given the years of no dividends and a stock price decline of two-thirds during this time; why is Lee Chin deciding to take the risk of a potentially unsuccessful APO now?
For what purpose? Is it to reduce the ownership of existing shareholders? Is it an attempt to generate funds for paying dividends? So, is the APO intended as a means to fund dividends? What the heck!
I really hope it's to finance growth. Anything else could send a worrying signal!
What drama in Lee Chin's NCBFG universe.
Mondays announcement by NCB Financial Group (NCBFG), Jamaicas publicly listed financial services behemoth, that it was giving consideration to launching an Additional Public Offering (APO) of up to 300 million new shares in the company, initially came as a shock to this business journalist
I sent the following message to the executive chairman of NCBFG, who is also the majority shareholder of the company:
Good afternoon Mr Lee-Chin,
I am trying to wrap my mind around a company, whose share price has declined by more than a third, offering 300 million new shares, which would have the impact of diluting all existing shareholders, especially the majority shareholder
Is the purpose of the APO to raise money to pay the dividend by the end of the year?