88E Sale Price13 May 2018 13:13
Almost half way through May now. We should be hearing something about the snow clearance very soon. Maybe even tonight, keep an eye on ASX.
With the snow clearance almost upon us, we must be very close to the placing shares being soaked up. The LSE has traded 510 million shares since the placing announcement and the ASX has traded 120 million. In total, 630 million shares traded, not including CHI-X.
With the raise of A$17, we added 460 million shares. I will estimate as high as 75% of those shares will be sold back to market before flow test results, so 345 million. Reason being is that placing holders will be happy with their 5-20% profit and not risk the results of IW2.
Its fair to say, a portion of shares would have been forward sold, by those 'in the know' of the upcoming placing. Naughty I know! The week before the placing LSE traded 180m shares and ASX traded 73 million. Total, 253 million shares.
If you add the shares traded pre-placing announcement (253 million) and post-placing (630 million) we have 883 million shares traded. Again not including CHI-X. The volume traded (883million) is close to double the new shares issued (460 million) and well over my estimated 75% of shares (345 million) that will be sold pre-flow test results.
Of course the total volume traded is made up of both buys and sells.
It would be nice if we get some institutions taking of 3% of the company in the placing - that would scream BUY. We are yet to get a holdings RNS to confirm it.
Buy anyway, in the very short term, exciting times ahead for the company and we should be getting a flurry of activity on the site this week or next.
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