Maybe the really disorderly process is believing that these wholesale investors intend holding your stock when you give it to them cheaply and dilute all existing shareholders.
Then you want to allow them to short the stock as well to create an artificial low and that doesn't encourage retail investors to apply for their shares as they see it trading lower than the offer.
In reality I think SRV would have done better to offer at lower price and get shareholders to over subscribe. Now in a thinly traded share you have this continual dribble into the market and if retail guys dont take up as I haven't because I bought for less than offer than the long term investors have this overhang sitting there as the underwriter will keep feeding them into the market until it has all been taken up.
Companies need to do a better job at this because selling shares to parties just looking to milk a quick profit before the real investors can stump up the money makes no sense.
Add to My Watchlist
What is My Watchlist?
