LYC 1.30% $6.25 lynas rare earths limited

Ann: Fully Underwritten Equity Raising - Approximately A$425M, page-4

  1. 2,935 Posts.
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    Not sure how you got $2.01, but the new theoretical share price should be some sort of weighted average between the current share price and the new shares' issue price. One thing you probably forgot to do was to add the value of the cash raised to the new market cap.

    Here's a short spread sheet of how to figure out the theoretical new SP (all figures in millions except the SP):

    425cash raisedA (from ann)
    1185new shares issuedB (from ann)
    21867old MCC (from HC)
    32292total new MCD (A + C)
    4715old sharesE (C / 2.61)
    5900total sharesF (B + E)
    62.55theoretical SPD / F

    This is rough and ready. Doesn't include costs of brokerage, which should be subtracted from the new MC, for example, but I couldn't be bothered finding that.
    Of course whether it is over or under-subscribed reveals extra information on the depth of demand which will have a significant effect on the final SP and MC.
 
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