Win4 - they can't do a placing again, not one that would lower SP value. After everything said in the results (inflection point, profit, £900k EBIT) - it would remove the last strand of credibility. I am keeping my position here now for the long term. Ignoring SP movement of today. Good RNS - I like the long term recurring revenue element.
"I think Sk is saying market cap say £150 million £250 million raised. Market cap £400 million. Essentially as a shareholder you will be exactly where it is you were. Because of new shares. The other guys point is the market cap will go up. But for shareholders itl make na'da difference."
Mrd - same as my thinking on the new issue not changing the SP. The part I don't understand is what price the new shares are offered. This has been pushed down for maximum win.
RE: IAG and Equity Raising Discount10 Sep 2020 08:28
Lemarc - I genuinely expect no SP movement from the $300m debt equity raise or the equity raise required to buy BP. Not on the day. I remember when PMO did this with the convertible loan notes. The market cap adjusted immediately to reflect less risk on debt. What we might see is a huge climb after it when this looks a lot less risky (4 years of headroom) and potential to be at a x 1.5 multiple of debt by end of 2021.