Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Banshee - yes, 5p happened to be a discount to the open market SP at the time of announcement, but the open market SP at the time is not determined by Velocys. Velocys didn’t think “we value the company at 11p but we’ll give people a discount”; they simply thought “we’ll issue shares at a price which we think people will pay (5p)” and that happened to be at a discount to the overhyped price after Grant Shapps
In my view Steve124, because the Institutions are only happy when they have it all. In this case, conceding 3.1% was likely a sop so that the government could align itself to the arrangement and claim shares at 5p had been made available to the public. In most placings all the shares go to one party and everyone needs to take their No1 haircut, so perhaps we should be pleased with the scraps? Having said that I still feel these will go to 15p at some point - need to know what Shell and IAG plans are and the timing.
If 5p was the real price instead of "mates rates" why is it the pi's are only allowed 3.1% at that rate?
Rowley - The 5p value of the placing shares is at a discount to the SP, not the company's opinion of the SP value.
I bought at 6p as well thanks
Imho I feel they rushed those shares out in preparation for a big announcement. Ie involvement of a major partner, shell or BA
I actually agree with expatbrat.
I was a long-term holder of this share (I can't even remember when I first invested, maybe 2013???) and used to ignore expatbrat. I finally sold last week after the announcement of yet another massive fundraise share dilution weighted heavily towards large/institutional investors because it seems so repetitive (and I crystallized large losses).
The cycle seems to be: positive news, hype, massive SP rise, fundraise mainly benefitting large/institutional investors, SP fall, sits low for a few years until the next cycle. Maybe this is standard for AIM.
At each fundraise that I can recall, of which there have been many, the SP has normally finally settled BELOW the fundraise SP when the dust has settled. Therefore, I got out at 7.4p and will buy back in if/when it drops below 5p. If it doesn't then c'est la vie, I will stop following the company and move on to something else.
One final thought - a lot of people are choosing to ignore the fact that fundraising at 5p per share means that Velocys (and their advisers) have effectively valued their company at 5p per share at this present time. So the question is why would anyone pay more than that for a share? FOMO? Or have I missed something?
All just my honest opinions.
this isnt about me. This is about sentiment and its effects.
Guess 6p wasn't low enough for you
copy and paste retrace for the Boris announcement, just like the days following the Grant Shapps run up. The MM's need to let this thing settle to its true value.