Can anyone do the maths and work out what the pro rata will possibly look like.
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Can anyone do the maths and work out what the pro rata will possibly look like.
Actually I think it is better explained if you bought a $1m house using $200k of your own savings and an $800k loan. On the one hand, you could say you have bought a house for $200k as that is all you are putting in. But the house has an enterprise value of $1m comprising equity of $200k and a bank loan of $800k. The important number from a valuation perspective is the $1m enterprise value. Similarly when buying a business, it is the enterprise value which is the most important valuation number - the division of that between equity and debt is secondary.
What will happen to its share prices after this capital raise?. How many times did they raise capial over the last couple of years?
I would expect that the majority of the shareholders will take up the offer. Because this is very much a value add exercise. Not a stress debt restructure exercise like RYM etc.
Interesting choice of underwriter's
New "partner" in the making?
https://www.afr.com/street-talk/ubs-...0230607-p5delj
https://barrenjoey.com/7839-2/