Have to agree with Hummms. The company has not much to do with the capital raising and there is too much uncertainty in a SPP, especially for a small company with no income and no cash and very little worth if liquidated. The placement usually works like this: The company needs cash and approaches a merchant banker (or stock broker). More often than not, the banker dedicates the SP, commissions and other terms but they guarantee the placement. The company can negotiate but if you are not Westpac or the like, very seldom successful. The banker than writes up a sexy promo report and sends to its selected clients and ask them to subscribe. If it is not fully subscribed, the banker has to buy it themselves. That is why placement prices are usually very much lower than current prices. The banker does not guarantee (or care) what the subscribers will do with the shares once placed. And if they have to buy it themselves, they will most likely dump it in the short term to free up cash for another deal. If you are interesetd in becoming a sophisticated investor, call the merchant banks instead. I believe APG uses Wilsons. I think once the placement price is announced on Friday and if the SP got murdered, it is a good time to top up or buy back in.
APG Price at posting:
3.5¢ Sentiment: Buy Disclosure: Held
