Ann: Botanix $40 Million Capital Raising for Sofdra Rollout, page-213

When new shares are issued in a capital raise (like a placement or rights issue), the price at which they're issued is often discounted to the current market price to attract buyers. Once those shares are released (often after a holding period or when they're listed), it's not uncommon for the share price to drift down toward that raise price — but it’s not guaranteed.

Here's why the price might go down to the capital raise price:

Dilution: More shares mean the value of existing shares is diluted.

Perceived fair value: The raise price is seen as a "true" or fairer value, especially if it’s significantly discounted.

Profit-taking: Early investors who got in at the raise price might sell once their shares are tradeable.Market sentiment: If the raise was for reasons seen as negative (e.g. covering losses), that can drag the price.

But sometimes it doesn’t go down:

If the capital raise is seen as growth-positive (e.g. funding expansion).

Strong institutional support or confidence in management.

Limited supply hitting the market (due to escrow or long lock-up).


Statistically?There’s no exact percentage — it varies by sector, market conditions, discount depth, and company specifics — but research and anecdotal data show a significant portion of stocks do test or approach the capital raise price in the weeks following the release.