The issue price is still not confirmed. I would not be suprised if AGO negotiated with a big chinese steel mill for the placments. Either way one would be nuts to sell to market when AGO opens. The sophiticated investors would have bought in for an investment. Just like the previous placement in June 2008, AGO raised 100mil @ 2bucks a share at the time AGO was trading at $2.40. The share did not drop to 2bucks but went vertically and stopped at $4.39. This was a strategic move by AGO management, no coincident! Recent capital raising has been very fruitful for every company that has done it in past 3months. There is alot of cash in the hands of funds and chinese companies lying around and this is the best time to make this move.
So i do agree with Lynx, share price will rise dramaticaly when it opens on Monday. I bet that it will open with an acompanying good announcment not just the Capital raising.
I consider myself very lucky, I had sold out my holding in AGO 3weeks ago, and only got back in last Friday just befor the market close. I bought a very large holding as soon as i heard the RIO and BHP JV.
AGO Price at posting:
$1.70 Sentiment: Buy Disclosure: Held
