Small shareholders in listed steel products manufacturer Steel & Tube are being warned against accepting an offer to buy their shares at a rock-bottom price.
A company called Zero Comission is offering $1.88 for Steel & Tube shares, compared with the company's closing price on Tuesday of $2.06.
Zero Commission is well known for making unsolicited, opportunistic offers for shares below their market value, which it says saves small shareholders costly brokerage fees.
However, Steel & Tube chief financial officer Greg Smith said small retail shareholders were always the target.
"They from time to time write to organisations and look to contact shareholders with small holdings to buy up small parcels of shares. You'd need to talk to Zero Commission to understand their business model."
He said about 2000 shareholders in the company would likely receive an offer.
They were advised to get professional financial or legal advice before acting on the offer.
The Financial Markets Authority warned investors to be "wary" of such offers.