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RYG

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3.3¢ raya group limited

Ann: Trading Halt, page-54

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JDragon

3,933 Posts.

239

12/01/16

12:38

Post #: 16777514
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Originally posted by HudsonDesign ↑

Sigh....

Except its not a standard CR. They are doing a book building. And they are doing that to find a fair value auction price for the stock, also likely, to have the offered price in the book building at a higher price.

So it could come back anything. It will depend on the investment meetings over the last couple of months.

But think of it more like a standard IPO where a company is listing for the first time and they don't know what to list the stock price as to start.

Yes they will take the current trading into account. But they will also look at the potential of other info they now have, the current charts showing a turn around looking likely, possibly the chip partner if that info is to be released etc etc etc.

So I would suggest people turn off their computers and go for a swim or a bushwalk today if the announcement doesn't come prior to opening.

Because its all just speculation right now. There is no real way to know what the investment meetings have lined up as a possible price band. Remember the investors will have to take into account the amount of shares they could purchase in the build and stack them up against how high they would drive the price if they tried to buy on market.

Is there a chance it could be at current or lower price? Maybe. But if that was the case they could have just done a CR. Doing a book build in this situation is usually to attempt to get a higher price. But only the gods know for sure what will happen from here currently.

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IMO they use bookbuild because there are too many bidders (insto/broker/investment bank) applying for CR. Instead of provide fix price through CR to the bidders.
The company offer bookbuild so that it could be bid for higher price as current price is too low.

Final bookbuild price determined through below process

Stage 1 – First Priority bidders

Stage 2 – Second Priority bidders

Stage 3 – Price leaders

Stage 4 – Remainder of bids
RYG Price at posting: 3.4¢ Sentiment: Hold Disclosure: Held
8 Upvote

0 Great analysis

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