Argo has a history of making new issues of shares to existing eligible shareholders, either on a pro-rata basis at a discount to the market price or pursuant to the Company's Dividend Reinvestment Plan or Share Purchase Plan. These share issues grow the Company, providing more funds for investment into the share market, and due to Argo's low cost business model, help achieve economies of scale through managing a larger portfolio with similar resources.
Details of renounceable rights issues, bonus issues, dividend reinvestment plan issues and share purchase plan issues of shares allotted since the introduction of the capital gains tax legislation are as follows:
- New Share Issues Since 1985pdf 200 KB
Renounceable Rights Issues
In the case of renounceable rights issues, a shareholder who does not wish to apply for the new shares can sell the entitlement on the Australian Securities Exchange and receive a cash payment. Alternatively, the entitlement can be renounced off-market to another party.
The offer of renounceable rights issues is normally not made to any shareholders with registered addresses outside Australia and New Zealand, having regard to the number of shareholders in such places, the number and value of new shares they would be offered, and the costs of complying with the relevant requirements in those places. In these circumstances, the Company appoints a nominee to arrange for the sale of the entitlements which would have been granted to these shareholders and accounts to those shareholders for the net proceeds of sale.
No brokerage or other transaction costs are payable to shareholders in respect of the allotment of new issue shares. All administrative costs are met by Argo.
Dividend Reinvestment Plan and Share Purchase Plan Issues
Shares are allotted pursuant to the Dividend Reinvestment Plan and the Share Purchase Plan to eligible participating shareholders. Details of these Plans can be found via the links below.