I had bought some CPU (Computershare) stock for DS2 when he was a child, so he currently has 250 CPU shares in his stock 'portfolio'. Computershare recently did an institutional fund raising round at $13.55 per share, and offered renounceable rights to current (as at 31 March) retail shareholders at a rate of one new share for every 8.8 shares held as at the record date. Any fractional entitlement is rounded up, so DS2 was entitled to purchase 29 shares for $13.55 each.
While this $13.55 offer price is not a huge discount to the current trading price (which is around $14.70), there isn't any brokerage cost, and if he didn't take up his entitlement the rights would be sold off and he would receive a small cash distribution (and his existing share value would be slightly diluted). Anyhow, as the stock portfolio of DS2 isn't worth as much as that of DS1 (due to me buying the shares for DS1 a few years earlier, so he benefited from a period of strong growth in the value of the shares I had bought him), I need to add a bit more to DS2's share portfolio to make it 'fair'. So I paid the $392.95 for these additional shares as a gift for DS2. His CPU share holding will now be 279 shares.
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