Cautious public forces Midi directors to buy up last of share offer

But a well-placed company source dispelled claims yesterday that the company met a dampened public interest for its share offer. “It was a successful equity issue, but it was not as successful as bond issues, which the public appears to understand better,” the source told MaltaToday.

Market observers noted that the share issue, which was not underwritten by a bank guarantee like bonds are, failed to capture the interest of the public as much as was expected.

Midi also issued 22,222,222 shares at a nominal €0.20c to its shareholders, which were taken up. But its subscription to the public closed on Thursday, 2 December only after Midi directors held an extraordinary general meeting to pass the resolution that allowed them and their companies to claim the last shares of the public offering.

“This is a legal requirement: for directors and their connected companies to buy into the general public’s offer, we had to pass this resolution,” the company source said.

Asked why the equity issue did not appear to have generated the same interest as previous bond subscriptions, a financial services observer said that the public has had mixed experiences with share issues.

“In some cases, they have not seen dividends from certain share issues, unlike bond issues. And we have seen the public getting its fingers burnt in recent share issues and equity products sold by banks.”

Earlier this month, company chairman Albert Mizzi said Midi would be issuing the public offering to raise funds as it entered the next phase of the €450 million-plus Tignè Point and Manoel Island project.

Planning permission is pending for 88 luxury apartments on two seafront blocks, secluded on account of The Point shopping mall. Also in the pipeline is a second public piazza with adjacent catering and retail offers and a business centre.

Subject to planning approval, Midi hopes to re-create a Mediterranean marina village ambience on Manoel Island, with low-rise residential developments consisting of bungalows, villas, maisonettes and apartments. There will be extensive landscaping and a fully-fledged marina able to accommodate super yachts, protected by a breakwater. The nearby yacht yard is to be secluded by a “commercial” strip.

READ MORE: 'Midi's formula for resilience: favourable payment conditions'