The SPP will be a stone around BSX SP until it is fully processed. That's why I much prefer a rights issue.
Retail will be selling in the hope of getting a few pips on the SPP at 58c.
Plus some "sophisticated" demand probably would have been filled by that $55m placement. And if the SPP gets too much higher than 58c a few of those might take profits too.
But its quite likely that the $5m SPP is going to be very heavily oversubscribed. People thinking they will get $30k may not be correct. Only 167 holders need to take up the $30k for it to be all gone. $5m where BSX is now is tiddlywinks.
The SP will find some sort of equilibrium point above 58c in my view - it may already be there in fact.
Any further news could shift that equilibrium higher - eg strong placement investors (funds etc) - such as ..
Time to be patient.
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BSX Price at posting:
62.0¢ Sentiment: Buy Disclosure: Held
