The current price reflects the optimism in the market at the moment. When trading was suspended on 18th March there were roughly 187m shares valued at $3.76 each. The capital raising will add about 204m shares at $1.70 each. Theoretically the combined 391m shares should have been worth $2.68, but closed at $2.78. This morning's ASX bids show 2.1m buyers and only 0.6m sellers, so there's some appetite from the market to buy. That seems to reflect the overall market's current view that the ASX200 bottomed on 23rd March and will slowly grind up from here (up 16% so far). I'm afraid you've missed out if you're looking to buy at $2. I hope that not all retail holders will take up their full entitelment and I will be able to pick up more than my allocation at $1.70.
Cheers
WEB Price at posting:
$2.78 Sentiment: Buy Disclosure: Held
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