AIQ Extends On-Market Buy Back of Units for Another Year
AIQ (AIQ) Share Update September 2024 Friday 6th
AIQ Extends On-Market Buy Back of Units
One Managed Investment Funds Limited, as the responsible entity for the Alternative Investment Trust (AIQ), has announced an extension of its on-market buy back of up to 10% of its issued units. This extension will last for another 12 months, or until all funds have been utilized, whichever comes first.
Instant Summary:
- Extension of the on-market buy back of up to 10% of issued units.
- The buy back will last for up to 12 months or until all funds are utilized.
- Approximately 3.1 million fully paid ordinary units have been bought back since September 2022.
- Units will only be bought if the price is less than 105% of the VWAP per unit over the last 5 days of recorded sales.
- Koda Capital Markets Pty Ltd appointed to act on AIQ’s behalf to conduct the buy back.
Extension Details
One Managed Investment Funds Limited, in its capacity as the responsible entity of the Alternative Investment Trust (AIQ), has confirmed that the on-market buy back of up to 10% of its issued units has been extended. This extension will continue beyond 6 September 2024 and will remain in place for a period of up to 12 months, until all funds have been utilized, or approximately 3.1 million fully paid ordinary units have been bought back since the initial proposed buy-back start date of 9 September 2022.
Conditions and Execution
The buy back will only purchase units if the price is less than both 105% of the volume weighted average market price (VWAP) per unit of all AIQ units sold on the ASX, calculated over the last 5 days on which sales in units were recorded before the trade date. Additionally, the latest AIQ ASX announced adjusted NTA (rounded down to the nearest half cent) must be considered. The Responsible Entity has appointed Koda Capital Markets Pty Ltd, executing via OpenMarkets Australia Limited, to act on AIQ’s behalf to conduct the buy back.
Operational Flexibility
The Responsible Entity retains the right to vary, suspend, or terminate the buy back at any time. There are policies in place to ensure the buy back will not be operational on certain days for compliance reasons. Investors are advised to refer to the Appendix 3C dated 6 September 2024 for further details.
The extension of the buy back program is likely to provide support to AIQ's unit price by reducing the supply of units in the market. This can be seen as a positive signal to investors, indicating the management's confidence in the underlying value of the units. However, the actual impact will depend on market conditions and the execution of the buy back strategy.
Investor Reaction:
Analysts may view the extension of the buy back program as a positive move, reflecting the management's commitment to enhancing unit holder value. Some investors might see this as an opportunity to hold or increase their positions in AIQ, anticipating potential price appreciation due to reduced supply. However, cautious investors may wait to see how the buy back is executed and its impact on the market.
Conclusion:
Investors should keep an eye on the progress of the buy back program and consider its potential impact on AIQ's unit price. The extension of the buy back is a strategic move that may enhance unit holder value, but its success will depend on market conditions and execution. Stay informed and assess the long-term implications for your investment portfolio.