Quote Originally Posted by Left field View Post
The current capital raising moves may well be prudent, however I'm happy to watch this play out from the sidelines. GLH!
This seems well structured capital raising.

The ratio of 1:9 is fairly small so it shouldn't massively impact the share price. The 2 July record date gives shareholders an opportunity to adjust their holding pre ex date (if they wish to). 37.5% of the money had been raised at no discount to the previous close. There's a shortfall book build so that shareholders not taking up rights have a good chance of receiving some value from the rights. Retail and institution shareholders are treated equally. All shareholders that take up their full entitlement have access to participate in the shortfall book-build. While the discount to the theoretical ex price is quite large, this should have kept the underwriting fee smaller.

If part of the recent declines in share price were from the market being nervious about debt levels, this capital raise will help mitigate these concerns (unless all the money raised is spent on acquisions).

Disc - hold