I happen to own some AMP shares. They are offering a share purchase plan (SPP):
Eligible shareholders who take up the offer will receive shares at the lower of $1.60 per share or a 2.5 per cent discount on the volume-weighted average price at which AMP trades between 30 August and 5 September.
Eligible shareholders can elect to buy shares worth of $1000 / $2500 / $5000 / $7500 / $10000 / $15000
The current share price is $1.80, which makes the SPP rather attractive (~11% discount). However AMP been crap and the current economic environment is not helping. On the other hand it looks like AMP been beaten into the ground already.
I would appreciate your opinion.
Um. Do read up on the most recent news regarding AMP:
AMP plunges to $2.3b first-half loss and asks shareholders for another $650m
AMP advisers shocked and furious
ASIC examples AMP/Clayton Utz in enforcement outcome
Why AMP and these ASX shares just sank to 52-week lows
AMP to raise capital after $2.3 billion loss
Though the stock market has likely already priced these events into the current price of AMP shares, so the discount might still be valid.
This is true, but personally I wouldn't. If AMP had any better options, they'd be capital-raising elsewhere. Share plans tend to be (not always, but quite often) offered when the company can't raise money elsewhere and for some reason feel they need to offer steep discounts to raise money.
Considering I trust a company to be in the best position to know about its financial circumstances, I'd be very worried about why AMP feels like they need to offer their shares at a 11% discount.