ProLogis (PLD) is putting Kimco to shame - the initial offering is 115M shares (they only have 267M shares) so 43% dilution. If they do the over allottment of 17M more shares it will be nearly a 50% dilution. Almost as cool as a reverse split! And unlike Kimco, ProLogis is UP 6% already in afterhours. Yippee! Dilute me! Hit me with more shares.
Now we know the game - tomorrow we look for the upgrades by the shady brokerages who are in delight over this ... which will allow everyone who gets in at tomorrow's offering price (big boys) to dump it on the retail public for what? 20%? 50%? 100%? 200%? profit? I mean if 30% dilution is worth 30% gain, what would 50% dilution be worth?
Looks like I'll be covering tomorrow bright and early! Maybe SL Green (SLG) can do a full 100% dilution, for every share that exists they can issue a new one and then we can have 3 analysts upgrade the "courageous" decision. Well we only have 3 REITs left to pull this ploy - we'll be on the lookout.
Congrats institutional buyers (again!) - time to call Citi, Merrill, and DB and ask for that allotment of shares to dump on unsuspecting retail buyers tomorrow. Then you can make your appearance on CNBC and say how your full year investment record is par excellete through natural stock selection and rigorous analysis. Boo Yah! Always a bull market somewhere.
- ProLogis (NYSE: PLD - News), a leading global provider of distribution facilities, today announced it intends to offer 115 million common shares in a registered public offering. The company also plans to grant the underwriters a 30-day option to purchase up to 17.25 million additional shares to cover overallotments, if any.
- Merrill Lynch & Co., Citi and Deutsche Bank Securities are acting as joint bookrunners for the proposed offering.
Here is the key, its Kimco 2.0
- Certain of the joint bookrunners and their respective affiliates are lenders and agents under the global line of credit and will receive a portion of the proceeds of the offering.
Short all names mentioned in fund; short SL Green and Phil Gramm in personal account