I agree existing shareholders will not be able to put up the $ 364 m in new equity.
But I think new institutions may as ARI will,look much better with $ 1b less debt.
With IOP improving and reforms and assistance in Steel I think a 2016 EBITDA of $ 300 m is possible
This will put a potential market cap of $ 1 b which is a hell of a lot more than it is now
As regards the timing of the issue. If they do it immediately at say 2 cents , they will have to issue 18 b new shares which would not be a good look ( though easily fixed with a consolidation as Bluescope did )
I hope they wait and let the SP recover
ARI Price at posting:
2.3¢ Sentiment: None Disclosure: Held