Geiger,
A SPP is doomed to fail.
That method of raising funds only is used successfully in a booming market with dividend paying stocks.
APG know this from experience as they did it June 02.Very few shareholders took up the maximum $5000 possible even if their entitlement was actually smaller.
In fact they only got from memory about 35 % of the theoretical maximum.
If it was a surefire method of raising funds they would be using it.
But I don't know of any company going that path.
From this mornings SMH I see Bluescope is raising $ 2.1 b by issueing new shares at a 40 % discount to the current market , and they pay a dividend !
It's a competitive market APG has to match it.
It takes a certain type of investor that can look through the market mayhem and say it's worthwhile to invest.
Small shareholders are the least likely of all investors to invest when the price is plummeting.They only come in after the rise.
The good news for you is that usually the market hates this type of capital raising and immediately marks back the share price to where the "sophisticated " investors bought in.
Sit around and wait. That moment is when you should buy !
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