You have a point. I certainly would have taken up everything if offered more, for example, your hypothetical 1 for 5. I guess there is some reasoning behind the offer. Maybe they were keen to get a portion of the funds quickly, or they wanted more certainty in terms of take up. There are limits to the amount they can get underwritten.
What are your thoughts on the SP once these shares hit the market? Barring any unforeseeable circumstances, do you think we are likely to go back toward the $11.40 issue price? My first thought was that it is likely, as plenty of retailers may dump their placement, possibly even sooner rather than later, as they may sell the equivalent of their placement as of Monday knowing that they will be getting those shares back at a discount later. Or am I way off? It might be an opportunity to pick up a few more cheaper to reduce dilution, should it happen.
TCL Price at posting:
$12.80 Sentiment: Buy Disclosure: Held
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