Just to add some spice into the mix...
Evolve is getting shorted---of late only...
https://www.shortman.com.au/stock?q=evo
No wonder when UBS is involved then shorting becomes inevitable...(they lend shares right?)
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Just to add some spice into the mix...
Evolve is getting shorted---of late only...
https://www.shortman.com.au/stock?q=evo
No wonder when UBS is involved then shorting becomes inevitable...(they lend shares right?)
I agree the two aussie investor directors have made a huge difference to EVO replacing the previous driftwood that destroyed shareholders funds.
Loaded up at near bottom and took my full entitlement ..................so well positioned and not surprised with SP movement.
Evo.asx has 1.37M shares available @14.5c tomorrow morning only peanuts after that
And on it goes like mid 45c roughly adjusted so well double price before issue - very odd situation.
They made the entitlement (rights) non-tradeable and non-transferable. For a few weeks retail shareholders have a somewhat decreased original holding value and an entitlement that is now has a value approximately double the value of the remaining listed share holding.
Shareholders receiving the entitlement need to either cough up quite a bit of cash or hope that the retail book-build occurs at a good price. Who know's what will happen in the book build because the institutional one had a poor clearing price and those institutions that passed must be kicking themselves just a little bit now.
EVO ASX closed at .14
The institutions coughed up about half(roughly) and the rest are for retail investors... I am guessing two possible scenarios..
If the retail Entitlement Offers are all taken then the share price will be stagnant for a while.. (may see some action if some acquisitions take place in OZ)
If the book building does happen then the institutions will be sold at a good premium which may spruce up the share price..
Disc.. Not selling my current holdings and taking up full entitlements
I believe institutions took up 98.8% of their entitlements and probably will be similar for retail. New Directors with plenty of skin in Evo gives me some confidence of success going forward but still plenty of hard work left. Wonder if down the track Evo could become another GEM .........
I don't think we will see the same uptake for retailer investors as they got for institutional holders, firstly many still harbour a grudge against the company for wiping so much value off the share price and many will be reluctant to put more money in especially if they have a large loss they have already accumulated. Secondly many won't have the money freely available like institutions do, the capital raising amount can be quite significant for some who have quite a large holding, so I don't see them wanting to double down on a company they might not have the most confidence in or at least not take the full entitlement. Even though the math works out currently, many aren't that well informed and good with the math that some on here might be.
We will know in 6-9 months if the Australian strategy is working and from there if they can form a big acquisition strategy to resemble G8 Education's success.