Ann: Successful Completion of Share Purchase Plan, page-140

See people starting new threads still struggling to grasp the effects of the capital raise on pricing.

Lets clear this up once and for all.

On 22 November, PNV had approx. 661.7 million shares on offer, the stock closed at a price of $2.09.

i.e. the market valued PNV at $1.383 billion dollars mkt cap pre-capital raise.
(the ASX200 index closed at 7181 incidentally that day)

PNV issued 15.8 million shares at $1.90 to institutions. Purely on a mathematical basis, that would suggest, versus the $2.09 close, PNV should be theoretically priced at: [(661.7 x $2.09) + (15.8 x $1.90)] / (661.7 + 15.8) = $2.085.

Similarly the company then placed 10.5 million shares at $1.90 to retail. Again, purely on a mathematical basis, versus the new diluted 22 November close of $2.085, PNV should theoretically be priced at: [(677.5 x $2.085) + (10.5 x $1.90)] / (677.5 + 10.5) = $2.075 (rounded down).

Yes people. Stripping out all sentiment, changes in the index (I mentioned the 7181 ASX200 close on 22 November, because it only closed 7152 last night) the capital raise should have had very little effect on the share price.

This is why I took my entitlement and loaded up under $1.90. Because all things being equal, the purely mathematical dilutionary effect of the capital raise was very minimal.

If your sentiment has not changed and you were not willing to sell the shares at $2.09 on 22 November, to sell so below $2.075 is, mathematically at least, irrational.

Larger stocks capital raising price moves tend to behave more like this, with mathematical rationale. At the small end of town, retail driven stocks tend to drop to the capital raise price (or lower). Why would I buy shares at $1.95 muse shareholders if I can buy them at $1.90.