RE: GLG2 Desperate trader or fruitcake..?15 Nov 2024 11:06
10:20, mjd, it’s simply a matter of what the market will bear.
EUA, sandersons and shareholder would all prefer that if a placing has to be done, that it is conducted at as high a share price as possible. … but obviously, the people who might be thinking of buying into a placing (whether as flippers or as longer term investment) would want the placing price to be as low as possible.
… hence, EUA will try to ask for a higher placing price, competing against potential placees threatening to just walk away with wallets kept closed if they aren’t given a juicy enough chance for profit with a low placing price.
unless sandersons were planning to put in even more money this time round, it’s irrelevant what they would like.