RE: I had a Dream17 Feb 2020 11:31
09.26 brom - "08:45 not sure that DW would discount over what he had to, seem to recall others here pushing an alternative fund raising scheme - when I checked discount was actually bigger :-( "
I believe you checked in regard to AST which was indeed a 20% discount through Primary Bid. In terms of 88e the closing price on 21 January was 1.375p and the offer was at 1.10p, again a 20% discount.
However Primary Bid have conducted a total of 51 placings - and for instance that of SDI group was only a 10% discount (SP 36.75p, placing 34p). So the terms do vary according to perceived ability to get the placing away.
What we don't know is why DW, having received an unsolicited approach for investment at a premium to the most recent placement in September 2019 (achieved at 0.7p), was not able to pursue this at a higher price than 1.1p. There may well have been other factors at play - eg the incremental increase in the well costs being higher than originally budgeted for and we know there was a shortfall of the sums raised in September 2019. But DW seems very reluctant to ask PIs for money at the moment, preferring instead to tap IIs.
A few other placings to PIs I have seen have stratified the placing price eg DW could have set the prices at say 1.1, 1.15, 1.2 and in effect requested investors to bid at the price they wanted though taking pot luck that they might miss out if bidding too low.
The most recent placing was only looking for around £2.6m so it's very doubtful there would have been a shortfall from PIs (when added to the unknown amount the unsolicited approach would have secured) through Primary Bid or any other method. Perhaps DW was looking for speed of transaction though PB is very quick.
All history now so will keep quiet on this subject!
Sign In
Follow the stocks
