03-Oct-2025: From the MarcusToday EOD newsletter this arvo:

STORIES

• Eagers Automotive (APE) – Resumed trading this morning. $450m capital raising at a 28% discount yet the share price was up 10% on the open [and closed up 15.3%]. Macquarie has some very positive research out. Calling it a ‘hard to fault’ acquisition. Highlights include the Canadian auto market being more than 50% larger than Australia's, with less competition and growing at 5.5% pa vs Australia at 3.4%. Both organic and inorganic growth levers are noted. Organic being increased global scale boosting margins. Inorganic being potential for further North American expansion. Mitsubishi’s investment in Easyauto123 (APE’s smaller used car segment) expected to drive expansion into North America before long. The numbers tell the tale. EPS (which captures the dilution from new share issuance) has been downgraded by 4% this year, then upgraded by 7% and 5% in the next two years. [Macquarie's] Target price raised 10% to $30. Very happy to keep holding in Income despite it turning more and more into a growth stock (we may yet add it to the Growth Portfolio). The gift that keeps giving.
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APE PLACEMENT DETAILS

• APE has announced the $452m capital raise will comprise a $143m institutional component (already completed), $309m retail and $50m strategic placement to Mitsubishi Corp. Retail shareholders will be able to participate in the capital raise at the $21 offer price. Booklet to be issued on Wednesday. Closing date 27 October. $21 represents a 28% discount to Tuesday’s close and 26.5% discount to the TERP. Big win if you hold already in other words seeing the stock up this morning. Theoretical Ex-Rights Price or TERP is the diluted share price post raise. Is calculated by blending the value of existing shares with the new shares issued and shows the adjusted price once all news shares are on issue.

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APE closed up +$4.48 (or +15.28%) today at $33.80. I'm guessing most existing APE shareholders (all that have the funds available to do so) will be subscribing for the maximum numbers of shares they can at $21/each in the Retail Entitlement Offer (which is looking to raise another $309 million, including commitments from Nick Politis and associated entities) which is expected to open on Wednesday (8th October). 

Details: Update---Equity-Raising.PDF [03-Oct-2025]

Discl: Not held.