HGH - Heartland Group Holdings

[Plata]

Any holder with a large stake can not stave off dilution with the SPP alone and must use the placement, and would arguably be underutilising their capital if they had sufficient funds sitting on call. I bet the institutions got advanced notice of this, I don't think the same can be said for many other stakeholders. A complete and utter joke. Just reeks of selling out to get some institutions onboard. All this corporate bulls*** they talk about ESG and climate change yet they can't consider the interests of one of their most critical stakeholders, the regular joe blogs public who owns ~70% of the company!

[SuperMario]

To be fair about this there has not been, much / any ? mention on here today of the share purchase plan for small shareholders with the right to apply for up to $50,000 of shares at the lower of the placement price, $1.80 or a 2.5% discount to VWAP.  HGH might also allow oversubscriptions in this regard.
It seems some people want to blame HGH for their own choice to be fully invested and their own choice not to retain any cash reserves for special opportunities.   Is it Heartland's fault the choices people make for themselves about their own portfolio allocations ?
Sorry...I don't see any basis for the bleating.

Assuming it is fully subscribed with spread across all/most shareholders. You don't think they'll limit it to 18.74% of your current holdings? For example like Pacific Edge did. Note, I haven't looked into other examples to see what is normal in these scenarios.

[Stoploss]

Assuming it is fully subscribed with spread across all/most shareholders. You don't think they'll limit it to 18.74% of your current holdings? For example like Pacific Edge did. Note, I haven't looked into other examples to see what is normal in these scenarios.
[/quote
Pacific Edge scaled that to limit losses to shareholders ..

[winner (n)]

Jeff has always had huge aspirations to be a real fintech ...and probably realised NZ was too small a place to really make it.

So this Advance thing in Australia is going to be the platform to make his dreams come true....a real fintech

A few years time Heartland changers it's name to Advance and essentially becomes an Aussie company with a branch in NZ

Heartland doesn't resonates with Aussies ...but Advance does eh .....and heaps more positive than Heartland.

Advance Jeff fair has a nice ring to it

[LoungeLizard]

SP geting a pounding as predicted. Maybe it will recover but this poorly thought out and rushed placement has decoupled HGH from it's image of looking after the smaller investor. I wouldn't be surprised if the SP remains in the doldrums for sometime and this event will mark the end of HGH as a hight yield stock. Bad day for HGH investors,

[Playa]

Interesting the   views on here. How do you see this? An opportunity not to be missed? Or a kick in the butt for shareholders?

[Left Field]

SP geting a pounding as predicted. Maybe it will recover but this poorly thought out and rushed placement has decoupled HGH from it's image of looking after the smaller investor. I wouldn't be surprised if the SP remains in the doldrums for sometime and this event will mark the end of HGH as a hight yield stock. Bad day for HGH investors,

Agree....Yes, ouch time. SP down 11% in early trading. Hard to say where it will end today, but I suspect over time it will go below the offer price..... (unless HGH have a cunning plan up their sleeves.) GLH

Playa.... I don't hold but with flat EPS predicted for FY23, I would be in no hurry to buy. Wait for good news.... or a change in trend. JMHO. DYOR.

[BlackPeter]

Interesting the  views on here. How do you see this? An opportunity not to be missed? Or a kick in the butt for shareholders?

I guess it depends how far the SP drops.

At the moment I only see a badly managed SPP with little consideration for retail shareholders. Clearly a missed opportunity for board and management!

Overall - the process to increase their Australian business clearly increases their risk profile, but we knew that earlier.

This highly rushed SPP makes you wonder which priority retail shareholders have for the board ... and looking into the past, normally I see little reason to stick around for a long time with companies which don't care about retail shareholders, but sometimes these compnies could be still useful for some trading. Not really a lost opportunity for investors if you don't buy more.

On the other hand - share holder stampedes tend to create opportunities for traders ... i.e. if the SP drops below $1.80, there well might be some short term trading opportunity.

Overall - for me lost HGH clearly its gloss, but hey - as the old Romans used to say "pecunia non olet" ..

Happy to pick up some shares at $1.50 if the opportunity arises ;

[LoungeLizard]

If you're a trader there's probably an opportunity here, but even traders need to be careful in choosing their entry point.
As for long term investors I feel this is a watershed moment for HGH as it pivots towards Australia and emphasises Institutional Investors. They didn't make any secret about how uninterested they were in the smaller investor by setting such a tight deadline. Many would have been scrambling to take up the share offer. I decided not to get involved - I only have a small holding - and I don't like how shareholders are almost railroaded in having to invest more in a company that clearly doesn't have their interests at heart, just to stop their portfolios from being diluted.
For me the shone has come off HGH - if the SP bounces back I'll sell up and move on.

[lorraina]

Decide a few months ago wife and I were sitting on too much cash.
Doubled wife's GNE holding,and added to my STU holding.
Still too much cash,so HGH placement came at just the right time for us.
I Always  find it is a good discipline adding to my core holdings.
With Chris Flood leaving the bank to join Jeff Greenslade looking for opportunities in Australia,
they are certainly not wasting time,with Stock co and now Advance Bank in the pipe line,the future looks pretty exciting.Good board and management with large holdings gives an added level to my confidence.

[LoungeLizard]

Decide a few months ago wife and I were sitting on too much cash.
Doubled wife's GNE holding,and added to my STU holding.
Still too much cash,so HGH placement came at just the right time for us.
I Always  find it is a good discipline adding to my core holdings.
With Chris Flood leaving the bank to join Jeff Greenslade looking for opportunities in Australia,
they are certainly not wasting time,with Stock co and now Advance Bank in the pipe line,the future looks pretty exciting.Good board and management with large holdings gives an added level to my confidence.

Yep, if you like companies that fleece the smaller NZ investor so they can use their money to invest in Australia then HGH is the company for you

[Plata]

Interesting the   views on here. How do you see this? An opportunity not to be missed? Or a kick in the butt for shareholders?

I think it is a good thing for heartland as a company and will facilitate continued growth.
I also think the offer price is attractive, but apparently none of the executive other than Tomlinson have committed in writing to partaking so maybe I'm wrong.
I also think we will probably see the share price get pretty close to 1.80 at some point in the next few months.

This company is/WAS something like 70% owned by the public and their behaviour with this raise suggests they are acting in the best interests of the other 30%. There needs to be a really good reason for the surprise rapid raising, yet I am not so sure a good one exists.

[LoungeLizard]

$1.88. What will it be when HGH go ex-dividend tomorrow?

[Hectorplains]

I think it is a good thing for heartland as a company and will facilitate continued growth.
I also think the offer price is attractive, but apparently none of the executive other than Tomlinson have committed in writing to partaking so maybe I'm wrong.
I also think we will probably see the share price get pretty close to 1.80 at some point in the next few months.

This company is/WAS something like 70% owned by the public and their behaviour with this raise suggests they are acting in the best interests of the other 30%. There needs to be a really good reason for the surprise rapid raising, yet I am not so sure a good one exists.

It feels like a kick in the sac to me.  I jettisoned a whack of HGH from my portfolio to go into Harmoney, where I was clearly seeing an excellent entry point with them that no one else was at that point... or since.  Now I'm holding red ink with Harmoney and my excellent peak Covid buy of HGH has had the gloss removed too.  These blitzkrieg raises are expected in the penny stocks of oil and gas, they're equally not acceptable from a finance stock.

[Fiordland Moose]

It feels like a kick in the sac to me.  I jettisoned a whack of HGH from my portfolio to go into Harmoney, where I was clearly seeing an excellent entry point with them that no one else was at that point... or since.  Now I'm holding red ink with Harmoney and my excellent peak Covid buy of HGH has had the gloss removed too.  These blitzkrieg raises are expected in the penny stocks of oil and gas, they're equally not acceptable from a finance stock.

I'd rather a fully prorata rights issue, but just worth recalling EBOS' last equity raise was similar to this (placement plus retail offer). Their 2019 raising I think was even just a pure placement.  Not that it justifies it - EBOS got raked over the coals for it. I think EBOS's ECM advisers were Macquarie and UBS whereas here it is Jarden, so doesnt appear to be a one broker thing.

Having a lower of placement price or discount to vwap is at least a handy feature.  I secured some extra shares and will look to pick up some more. You'd be gutted if you had picked up a load recently before today, thinking it was going to pop on some result or chasing the divy.