Share
6,487 Posts.
lightbulb Created with Sketch. 349
clock Created with Sketch. 03/08/18
13:59
Share
Originally posted by OTs
↑
You are absolutely right. Liquidity is constraining this stock at the moment. The way I see it playing out is that debt funding followed by equity raising is the key catalyst. The stock will re-rate on the back of this. They need to raise US$322m to develop the project, 60/40 Debt / Equity implies they will be raising about US$129m in equity or A$175m. Assuming it is funded part rights issue and part placement I can envisage a 1 for 1.5 Rights Issue. Assume its priced at 80c and you are 176m new shares to existing holders and then assuming the balance (i~US$35m is funded via a placement to new / existing institutional investors at ~80c), then there is another 43m shares.
Expand
I agree that DNK is in London for institutions, it's much easier to get funds.
(20min delay)