New share issues often result in a reduced share price, especially for junior miners as the share issues are often used to cover operating expenses. Also, in my observations the SP tends to track towards the issue price. However this one may be different, because the reason for the share issue relates to the strategic acquisition of an income producing asset which adds value to PLS.
Also, the issue price is now 57.5c below current SP (93.5c on 5/1) so it's difficult to see the SP dropping that much because of the share issue. Other forum posters have mentioned the increase in lithium spot prices in recent months and the changing of sentiment in the lithium industry which IMO is positively impacting on SP's in the industry.
My expectation is that the SP may decrease a little after Jan 18 (Jan 11 is the offer close date, then shares need to be allocated) before rising again.
Cheers, TCS
(PS: This is not intended to be financial advice, DYOR etc, etc)
Ann: Retail Entitlement Offer Open for Acceptance, page-192
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Last
$3.07 |
Change
-0.190(5.83%) |
Mkt cap ! $9.239B | |||
| Open | High | Low | Value | Volume |
| $3.19 | $3.20 | $3.07 | $96.53M | 30.85M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 41 | 815921 | $3.06 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.08 | 309816 | 3 |
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| Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
| PLS (ASX) Chart |