Amazinmg stuff, Winky. Here's apost I put on the OZL threads re IVA and liquidity:
Something else of interest: IVA has close to 354m shares. Of those, 533.5 shares are held by the Top 20, for a total ownership of 96.51%. M&G have been buyers for most months, buying about 1% each time. They now hold 11.21%. With only 3.49% of shares "available", assuming not many of the Top 20 are selling, large buys (by M&G?) could wipe out liquidity!
The other large holders are HSBC, National Nominees, JP Morgan, Citicorp, Austock, RBC Cexia, Cogent, and UBS. AMP Life is in there as well (losing our superannuation on this investment, no doubt). I am going to assume that these large funds shuffle shares around to provide some level of liquidity. But M&G are still net buyers. ______________
Only 20m shares or 3.5% not owned by the Top 20. No wonder it gets knocked around.
Perhaps IVA will do a large placement or retail raising. They really do need to do something to get more liquidity. I recall last time, they had a placement @ about $1.30. Their SP then fell to about 73c, which was when I took notice. It then flew to double the SP! And now, back to 58c.
OZL could do worse than taking out this one. IVA has been something of a quiet powerhouse,with a SP 6.5X what it is now, not too long ago, or about $2b market cap (now $321m). Much of the SP fall would have to be due to Ivanhoe, the parent, and their own deals. IVA is now like a stranded orphan, which presents opportunity, because fundamentals haven't changed, just circumstances.
Anyway, June is their date. They've said they want something sorted by mid-year. Meanwhile, in these markets, I suspect IVA will be "cheaper" on Monday.
IVA Price at posting:
51.6¢ Sentiment: None Disclosure: Not Held
