There may be some retail shareholders who will sell off their new shares, and make a quick buck, but the total SPP is only ostensibly for $10 million, which may be increased at the Company’s discretion.
The original placement was for $125 million at the beginning of April. In my opinion, any major sell off would have occurred by now, with the institutions having a jump on retail shareholders. The fact that the share price has been increasing steadily since the placement indicates that the institutions have confidence that the new funds will be put to good use by the Company, and have been holding on to their new shares. Therefore I don’t think there will be any major pull back in the share price, when the retail shares are issued.
Over the years, I have seen many capital raisings by companies I’ve had shares in, and this is one of the few where the share price hasn’t reverted to the SPP price in the short term.
I hope I haven’t just jinxed this!
CCP Price at posting:
$23.91 Sentiment: Buy Disclosure: Held
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