Well you may be right Summah 1999 but I wonder whether they would be that keen to dump at a loss. If they have underwritten the entitlement issue at $ 3.50 then I would be surprised to see them rushing into the market to dump at say $ 3.40. I think they would sit on their hands for a bit and allow the market to settle and the share price to rise so they made a bit of a profit if they were keen to sell at an early stage. I think they will be in for a longer haul than a matter of weeks. Let's keep in perspective. So far IFL's coffers have been added to by the tune of AU$ 452 million plus AU$ 282 million to make a total already in of AU $ 734 million. Now the number of shares offered to retail investors is fully underwritten at AU $ 3.50 per share of any shares not taken by the entitled shareholders. So that money is also a given. Another poster in a recent post has indicated that the SPP could produce a further AU$ 50 million. That sum is not underwritten but in the context of the other three main sources of funds it is fairly small beer. Useful as a top up but not critical I would suggest to the success of the purchase.
So less wailing and gnashing of teeth please.
IFL Price at posting:
$3.42 Sentiment: Buy Disclosure: Held
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