Gents With re-ipo they firstly consolidate the shares so there are less on offer... So say a 1:10 share consolidation would put us at $3 Then they hold an ipo and raise say in this case $250,000,000. The ipo would be handled by a broker such as citi and would be underwritten. The basis of the underwritten value would be the enterprise value.
Look at it like the facebook ipo. Where existing shareholders in res as the facebook employees who got their share allocation under the float.
This is a good way to raise the equity we need at a much higher price than the current share price.
Cheers
Dave
RES Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held