So Netwealth has arrived at a valuation of 22c per share, down...

So Netwealth has arrived at a valuation of 22c per share, down from $3.01.

FNP restated their net assets from $670 million to just $61 million. As I mentioned in another thread, basically FNP management were previously stating that the company was over 10x more valuable than it actually was. The business a whole will be valued lower in line with their restated accounts.

It's hard to predict exactly where the share price will end up, without knowing the details of the recapitalisation. A recapitalisation involves outside (new) capital being injected into the business in exchange for equity (such as, additional shares on issue). This would mean that existing shareholders will own an even smaller fraction of the business.

My earlier prediction was that the share price will settle somewhere below 30c / share after commencement of trading, following announcement of the details of the recapitalisation. Netwealth's valuation of 22c would be consistent with this.

My sympathy to anyone who is holding this.