Burt,
This issue here is one of "control". You see, typically a rights issue with a lower price will attract greater "participation" from shareholders and vice versa.
Therefore by inappropriately pricing at an "inflated price", a potential sub-underwriter can achieve a greater take-up in any potential shortfall..
A failure to adequately grasp this concept is why PRC is still viewed as at attractive alternative by some shareholders. Many shareholders think PRC are actually doing the company a favor by potentially proposing a rights issue at a price that does not necessarily represent market value - A shareholder must look deeper into the underlying motive of pricing.. Why price it so high? Oh, so you can get more shortfall.. aha, I get it..
Burt, This issue here is one of "control". You see, typically a...
-
- There are more pages in this discussion • 30 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add PRX (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
0.3¢ |
Change
0.001(50.0%) |
Mkt cap ! $6.353M | |||
| Open | High | Low | Value | Volume |
| 0.2¢ | 0.3¢ | 0.2¢ | $242 | 100.1K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 37 | 40483127 | 0.2¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 0.3¢ | 16013694 | 18 |
View Market Depth
| Last trade - 15.13pm 21/06/2024 (20 minute delay) ? |
| PRX (ASX) Chart |