Australia’s biggest telecom giant Telstra has decided to offer shares of worth $8 billions under 2 phases. Each phase will be valued $4 billion each.
To buy offer, retail investors will pay $2 per share for their first installment under the $8billion float. The federal government of Australia is offering discount of 10 cents on each share on first installmemt.
Retail investors will get a discount of 10 cents on the first installment, compared to the price paid by institutional investors of $2.10, according to a prospectus for the offer launched today.
The price of the second installment, which will be payable in 18 months, will be set by an institutional bookbuild. In addition, retail investors will receive one bonus loyalty share for every 25 shares they buy in T3 and hold until the final installment due date. In addition, retail investors will receive one bonus loyalty share for every 25 shares they buy in T3 and hold until the final installment due date.
The minimum number of share one wants to buy is 500 and the maximum is 200000 for retail investor.
The offer is the largest in Australia since the last sale of Telstra shares in 1999, when the shares fetched $7.40 each and raised $16 billion for the Government. The terms of the current offer mean T3 investors will pocket a full year dividend of 28 cents per share guaranteed by the company for 2006/07, despite only paying one installment.
Telstra shares were trading at $3.77, down 6 cents, at 1.20pm yesterday.
Via: news.com
