"I still don't believe we couldn't have raised the required funds in Australia anyway."
@TheGardner,
Bell Potter - a relative bit player on the domestic broking scene - just two and a half years ago managed to raise $170m, via a placement, @ $6.30, which was a mere 2% discount to the last traded price at the time.
Between them, Bell Potter, Deutsche Bank Australia and Credit Suisse Australia could surely have raised the sought capital via an underwritten, fully-renounceable entitlement offer, thereby offering loyal shareholders to support their own business and who would have held onto their new shares, rather than issue stock to a whole lot of hot hands who simply immediately starting flicking the stock on Day 1, and haven't stopped since.
After all, the company has progressed its portfolio over the past two and a half years, so shareholders would surely have jumped at the chance to buy shares at less than half the price of the that last raising.
But why on earth the investment banks handling the IPO in the US didn't just slot the hedge funds that were short - in which case the stock would have almost certainly have cleared at a price much higher than US$8 - is beyond me.
MSB Price at posting:
$1.83 Sentiment: None Disclosure: Not Held
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