Originally Posted by
Baa_Baa
When a company values it's own stock at a significant discount to the market price, it's only reasonable that the market follow their lead. For example, if a punter owned stock at the current price but committed to the discounted SPP, it makes sense that they sell now and use that money to fund the new purchase - bingo, instant capital gains. But only a couple of days or you lose your ex-Div. For that and other reasons, it's not surprising when the market re-rates the stock down to the company's lowly SPP valuation.
The whole thing looks a bit desperate, the obscene haste and compressed timeframes, the significant devaluation to market, ambushed on announcement day, waiver of the listing rules (time between announce, divi and cap raise), dilution of shareholders who cannot participate, the method of SPP instead of a rights offer. Something smells, it's just plain not a good look.