Afterpay Touch Share Buyback Question?

activ8newbs on 31/08/2018 - 18:59

Hi guys,

I was lucky enough to ride an awesome wave of Afterpay, although admittedly only a small amount was invested.

At $5.75 I put in $500. The share price is now hovering around $20.

Disclaimer: This is my first ever trade on the ASX

Today I recieved an email from Afterpay offering a share buyback. I would like help understanding what this involves. I did some research but I don't understand why I would sell these shares? If I wanted to sell, I would just sell on the open market at the market price, right?

I can't see any advantages of selling via the share buyback offer. I understand that any advice offered will be general in nature, and I will not base my decision solely on the advice offered here.

Any input would be greatly appreciated!

Thanks

Financial

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Comments

  • Tech5 on 31/08/2018 - 19:57
    +3

    Arent share buy backs pegged at higher than market?

  • [Deactivated] on 31/08/2018 - 20:06

    Correct you could just sell on market, however buyback means you won’t have to pay brokerage. It should mention somewhere how they arrive at the price probably market close as at a certain date or a weighted average.

  • blighst on 31/08/2018 - 21:16
    +2

    Are you sure they're doing a Buyback? They sent out Share Purchase plan prospectus's today I thought?

    • activ8newbs on 31/08/2018 - 21:36

      Holy moly. I think I confused the two.

      Can you please tell me more about this?

  • chumlee on 31/08/2018 - 22:02
    +1

    Are you sure it's a buyback and not the share purchase plan?

    • activ8newbs on 31/08/2018 - 22:17

      You're right! It's an SPP

      • chumlee on 01/09/2018 - 07:40

        It's allowing you to buy more - up to $15K worth.

        It will be scaled back significantly. I reckon $2k to $3k is what retail investors will get

  • T-man on 31/08/2018 - 22:19

    Where did you trade?

    • activ8newbs on 31/08/2018 - 22:23

      In my living room?

      Via CommSec?

      • CyberMurning on 01/09/2018 - 00:20
        +3

        As long not from toilet, it's fine. Lol

  • CyberMurning on 01/09/2018 - 00:20
    +1

    Doh. Completely different,buyback and spp.

    Spp you can buy more, directly from the company. Usually max is $15,000 maybe more. Price wise, they will tell you after you apply usually by weighted Average price of date xx to yy, and bla bla bla.

    Generally spp is good for investors. Don't blame me though if this one isn't .

  • EightImmortals on 01/09/2018 - 09:44

    Yes buyback and SPP are two different things. A buyback is when the company purchases shares on the market https://www.investopedia.com/ask/answers/042015/why-would-co… An SPP allows investors to buy an amount of shares at usually better than market prices without brokerage.

  • imprvn on 01/09/2018 - 13:29

    Given the risks involved, you should seriously consider reading up on the basics of investing before you sink significant amounts of your hard-earned money into shares.

    The following were very helpful to me when I started investing:

    Investopedia = financial dictionary
    Motley Fool Australia = helpful summaries of company and market news
    The Barefoot Investor = step-by-step guide to everything financial-related
    The Intelligent Investor = widely regarded as the bible to investing

  • iand on 01/09/2018 - 17:09

    the way I understand it from the email the Share purchase plan is to buy shares in lots of $1000 at a price to be set closer to purchase time but to be no higher than $17.05

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