article in the Australian by Barry Fitzgerald, page-6

That is often true for CRs and SPPs where some holders may sell some or all of their holding at market price and buy shares cheaper under the offer to either bag a short-term profit (or to reduce their cost base if they continue to hold).

But this is NOT a CR or SPP. It's an offer for a 2:5 entitlement issue. If existing holders sell their stock now they will only be able to buy back 40% of their holding as at the record date for the 5c offer price. A1G is offering such attractive value at $10m to $15m market cap so I don't expect many to sell below even 10c. IMO this will NOT fall to anywhere near the 5c entitlement issue price.