Always difficult to get these things spot on...not my area of expertise, as such, sometimes they can be hit and miss, relating current prices to book or "par" values and the like...but...
1. 2:5 rights = .40 (ie 40% adjustment) 2. 53c divided by 94.5c = .56 (ie 56% adjustment)
3. .40 x .56 = .2243 (22.43%)
100% - 22.43% = 77.57%
Closing price 94.5c x .7757 = 73.30c
As such, expect the ASX to adjust the open price to 73.30c...lol...a down day and it hasn't even traded yet.
Of course, we get our free rights which will be worth about 21c from the open based on the above numbers, but as you only get 2 for 5, you are actually down.
The market will not sell out for a loss however, so expect the price to actually rise above the "adjusted" price (if I am right that is) to a level where the transaction becomes neutral.
Seems strange the adjustment results in an instant loss..so I may well be wrong here?
Anyway, might be best to look at the results for a neutral transaction...
