You might be quite surprised at how many will take up the offer. There's a number of reasons why many will.
1. Many long term investors don't watch the market daily, they pick a stock, buy in and ride it until boom or bust.
2. Older less tech savvy investors, many still call their broker on the landline, they have no idea of daily fluctuations and only read an offer document sent by mail offering a discounted price with no fees. (Must be a good deal).
3. Strong believers in a company consider it their duty to participate to do their bit in helping their company raise its funds.
4. Volume, if you calculate the required volume to raise the funds they are seeking, you will find a huge shortfall in shares available at that price, many just can't be bothered wrangling the market for days or weeks to get their fill.
5. We all have 1 month of free trading up our sleeve, which means many of us will wait it out knowing we have a garanteed buy in price, this allows us to watch and wait for the final hour at no risk, or to sell our current holding should the price spike knowing we have a set re-entry price, kind of a short sell opportunity.
DXN Price at posting:
15.5¢ Sentiment: None Disclosure: Held
