Technically speaking you are correct. You quite often see undersubscribed SPP’s where the Company raising is raising due to financial stress. Not the case with Volpara. Also jumping the gun as to whether the SPP will be undersubscribed. That will only be known in a couple of weeks time. It is quite possible that the current SP is being managed by those cut back in the placement in an effort to accumulate more. Think of it, they get to accumulate before the SPP and then get to be offered more if the SPP is undersubscribed. They get to score twice, both at the expense of short term retail investors.
Finally, worth remembering that the Company could have simply gone the Placement route. Many Companies do, diminishing the interests of retail shareholders.
Hopefully, food for thought, all IMO of course.
Rokewa
VHT Price at posting:
$1.25 Sentiment: Buy Disclosure: Held
