sp weakness, page-11

fame posted: "This was the message from my broker - "the placement was for 157 million shares at 10.0c to raise $15.7m and was restricted to professional & sophisticated investors - it was massively oversubscribed and allocations were reduced."

The last 8 words caught my attention."


fame

thanks for yr info but if i was offered avb heads at 10c a throw then i would also take plenty (as would many others presumably). little wonder then that it was massively oversubcribed. in fact at 10c, if it wasn't massively oversubcribed, it would be a serious worry.

i am constantly disappointed with companies' poor execution of their capital raisings. if the deal is well pitched (and well-timed) then, depending on the respective company's story, it should not always be necessary to offer a significant discount.

two of my other holdings have recently raised capital at a premium to the prevailing market price through clever marketing and good sales technique (usually directly to existing and/or potential shareholders). unfortunately, clever marketing and good salesmanship of cap raisings by management is a rarity amongst australian junior and mid-cap miners ...

kb7