I'm drippingIf Paros likes the stock, I'll take some more too.
Apparently there are three types of DRIPs. Broker-operated, company-operated, and third party-operated. The broker-operated buy on the open market with cash received from the company. The latter two subscribe for shares from treasury, so the company keeps the cash. Will have to confirm with brokers that the latter is specified, so the company keeps the cash and brokers are not buying for clients all at once in an illiquid security.
The dividends are still taxable. What's the point of this anyway, just to dilute shareholders slowly?
Maybe they can find a better use for the money. We did pretty well on the private equity funds in the USA. Looks like they invested $11.3m and got a return of capital of $16.1m within a year, with a residual equity valued at $7.5m. A double with a less than 1-year payback, if I read the accounts correctly.
Hopefully no more investments like Highland Gate, which has been an unmitigated disaster.
No blocks coming up for sale from the institutional/fund shareholders? Maybe they should do a SIB for a few million. What's stopping them?