Hello codeai, what is the intrinsic sp?, where does that come from?
Seriously doubt if Company directors have a issue with their own holdings being diluted especially when they have the upside of their options to cash in once they are in the money and with zero risk.
That institutional investors are prepared to not see their holdings massively diluted is relative, if they participate in the IPO then they can acquire those cheap shares, especially if they were the ones that paid $23 and $16 previously.
That sentiment of not wishing to seeing ones holdings being massively diluted has been a moot point up to date, 2 consolidations is proof of that. The biggest ‘lies’ on record here are the ; No more CRs and ‘We will keep dilution to a minimum’
Naive to expect cheap shares on the upcoming IPO is hardly that, but a possible reality, the naive part way more applicable when it came to having faith in the spiel WP has touted, especially the last couple of years.
I am leaning towards the IPO being done at a premium to the current sp, that said, to be tempered with the reality that this Company has a well documented history of disappointing its investors.
Be interesting to see if the IPO listing sp is set to be superior to the current sp whether that ‘info’ leaks out and reflects in the current sp.
Imho, not advice.
AVR Price at posting:
$9.00 Sentiment: Sell Disclosure: Not Held
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