Open Offer v buying on the open Market12 Dec 2023 11:07
Morning all - looking for a bit of clarification / understanding.
First of all, I think the open offer is looking to raise gross £8m? Is that figure (or whatever the figure is) based on everyone taking up the option of buying one share for every 45 they have or does it rely on PI buying excess shares as well? (I appreciate that overseas investors cannot partake in the offer.)
I'm with Jarvis who for some reason only got notification of this on Friday and I now have the letter inviting participation in the OO (instructions must be with them by tomorrow so sorting this out today.)
Looking at buying in the open market today there is a big difference in the bid / offer. I can buy at 11.25 which guarantees I'll get what I want but at slightly above the OO price. Interestingly, to sell it would be 10.75 - the MM know what they're doing!!!
Anyway, my thinking is that irrespective of the small difference in price, it would be better to buy in the OO as that cash would go into Scancells coffers rather than a slice going in the back pocket of the MM. I guess the gamble is that in the event of being oversubscribed, I wouldn't get as many as I'd asked for. If the OO was oversubscribed, I wonder if they would increase the allocation like they did in the placing to raise additional funds?
Would welcome thoughts.....................