iCar Asia offer closing soon

Here's a quick reminder. iCar Asia's 1 for 44 entitlement closes this Thursday 30 July. If you've put your paperwork aside – as advised in iCar Asia's entitlement offer from 14 Jul 15 (Speculative Buy – $0.67) – you need to decide what to do.

The share price has risen 7% since then and is now comfortably above the $0.65 issue price. So it makes more sense to accept the entitlement now. It was a much more marginal prospect at the time of the last update.

For many small shareholders, a 1 for 44 offer won't make a lot of difference. For example, if you own 5,000 shares, taking up the offer will cost less than $74. Remember, though, that you are able to apply for more than your entitlement.

Assuming your portfolio exposure to iCar Asia won't be more than our 2% suggested maximum, a 65 cent entry price looks pretty attractive. You could apply for considerably more than your 1 for 44 entitlement and see what happens. Occasionally you'll be surprised, as many people often ignore the ability to apply for more shares.

As the offer closes on Thursday, act soon. The recommendation remains SPECULATIVE BUY.

Note: Our Growth Portfolio owns shares in iCar Asia and has taken up its entitlement.

Disclosure: Staff own shares in iCar Asia – and are planning to take up their entitlements – but not the author.