The market cap of Kagara before and afetr their recent raising defies my simple logic so I seek explanations from wiser minds than mine.
In mid June KZL had 256.6m shares priced at around $1.15 ($295m cap)and debt of $192m for a cap after debt of $103m. After an institutional placement (38m shares), institutional entitlement (151m), retail entitlement(92m) and placement to Guangdong (95m) they raised $226m. Their costs for the raising were around a breathtaking $20m.
Now that they have raised enough money to pay of their debt what is a debt free KZL worth with 633m shares on issue? At 69cents the market thinks the answer is $437m. What do you think?
Interestingly Korea Zinc didn't take up it's entitlement and only 65% of the retail entitlement was taken up.
KZL Price at posting:
68.5¢ Sentiment: None Disclosure: Held
