Capital Raising and Conversion Example for DIG
CAPITAL RAISING
Illustrative return scenarios based on sensitising the IPO valuation
Worked example
scenario
-1
Illustrative IPO valuation ($M)
40
50
60
|
70
80
90
100
+
Pre-IPO primary raise ($M)
5.00
5.00
I 5.00
5.00
5.00
5.00
5.00
L
Interest accrued @ 8.0% ($M)
|
0.40
0.40
0.40
0.40
0.40
0.40
I
0.40
+
Principal value of notes at IPO ($M)
5.40
5.40
5.40
5.40
5.40
5.40
5.40
I
I
Conversion price based on valuation cap ($)
T
0.10
0.10
0.10
0.10
0.10
0.10
0.10
I
Conversion price based on 25% discount to IPO price ($)
T
0.07
0.09
0.11
0.13
0.15
0.17
0.19
|
Conversion price ($)
0.07
0.09
0.10 |
0.10
0.10
0.10
0.10
I
Effective discount to IPO price (%)
-25%
-25% I
-29%
-39%
-47%
-53%
-58%
I
I
Shares issued to noteholders (M)
77.52
59.41
51.54
51.54
51.54
51.54
51.54
|
IPO price ($)
0.09
0.12
0.15
I
0.17
0.20
0.22
0.25
Value of noteholders' position at IPO ($M)
7.20
7.20
7.64 I
8.92
10.19
11.46
12.74
I
I
+
IRR to noteholders'
44%2
44%²
53%
78%
104%
129%
155%
dig
The Discount to the IPO price
& additional interest protects
noteholders in the event of
lower valuations at IPO
The Valuation Cap in the worked example
provides noteholders with upside at IPO
Note: This worked example is a simplification of a potential outcome for pre-IPO investors in DIG. All data expressed as SA, unless specifically stated otherwise. All figures rounded to 2 decimal
places.
The IRR to noteholders is calculated based on the following formula: IRR = (Value of noteholders' position at IPO) / (Pre-IPO primary raise) - 1 (on the basis of exactly a 1 year hold)
1.The minimum 44% return is based on $5.4m of Notes ($5M face value + $0.4M interest (8%x$8Mx1 year)), converting at a 25% discount to the IPO price - i.e. $5.4M/(1-0.25) = $7.2M. 44% =
$7.2M/$5M-1
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