Question 1: Is Xero (XRO) giving retail shareholders a chance to participate in its mega capital raising?
Answer: Yes. There is a $200 million share purchase plan (SPP). Shareholders will be able to purchase up to $30,000 of Xero shares at a price not higher than $176. This is the same price institutional shareholders paid in the $1.85bn capital raising completed on Thursday.
The SPP is scheduled to open on or around Wednesday 2 July and close on Monday 21 July. You will shortly be sent a SPP booklet.
Question 2: With the new tax on super balances over $3 million, who is liable to pay the tax?
Answer: The individual is liable to pay the tax, which is called Division 296 tax. It will work like Division 293 tax (the extra tax on super contributions for those with an income of $250,000 or more). That is, you can pay the Division 296 tax personally or ask for one of your super funds to pay it (by releasing your monies), or a combination of both. Payment will be required within 84 days of the notice of assessment being issued.
Question 3: What is your view on TLX (Telix Pharmaceuticals Limited)? It has had a good run, but the share price is starting to trend down of late. Do you see the stock as a buy, hold or sell?
Answer: I am not a biotech expert, so I am cautious about offering an opinion on the stock.
That said, Telix Pharmaceuticals (TLX) appears to have a good runway. Its products are gaining regulatory approval and increasing market penetration, it competes in markets with a reasonable TAM (total addressable market), and they meet real patient needs. The brokers who follow Telix have “buy” recommendations on the stock. According to FN Arena, the consensus target price is $35.00, about 44% higher than the last ASX price of $24.31. It looks more like a “buy” to me than a “sell”.
Question 4: Are there any changes to the super caps next year?
Answer: No, the concessional contributions cap (employer contributions, salary sacrifice, tax deductible) remains at $30,000. The non-concessional cap (personal contributions) is set at 4 times the concessional cap and remains at $120,000 in 25/26.