Ann: IOOF Retail Entitlement Offer opens, page-100

Quite a few mentions of the risk that the underwriters who now find themselves longer the stock than they may have intended, will see the share price remain under pressure as this stock is offloaded into the market.

I would be quite surprised if the underwriters did not pass on their underwriting risk to sub-underwriters, many of whom are likely to have participated in the $3.50 placement plus entitlement offer in return for a sub-underwriting fee.

Is this 'incremental' stock likely to be dumped into the market is anyone's guess but many of these investors may simply hold on for a while until the share price stabilizes.

Thus my layman's view is that it would be surprising to see the share price gap down further, however the potential 'overhang' in the hands of potentially overweight investors could put a cap on the price at around $3.50 until portfolios have been reweighted which could take a couple of months, ceteris paribus.

GLTAH