Not sure how they will run it but you can bet your bottom dollar it will be at a discount to the SP of the day :D
But not too much of a discount, the special discount is saved for the directors :D
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True but in the end if the company performs then it doesn't really matter. ST traders will be most interested of course. Also why do you think companies invest in investor relations people for exactly that reason to give a "fair" overview of their business and hopefully increase liquidity.
Market makers/ research is one of the mechanisms that should help the NXT do well. In the end it is all about the business performance so I am not really concerned except if I need to enter exit a stock at a sensible current valuation. Poor liquidity does not help for either parties.
What do you think is the most likely ratio for the pending share consolidation, and why?
Illustration:
Consolidation Shares SP 25/3
1,468,406,587 $ 0.022 2 734,203,294 $ 0.044 5 293,681,317 $ 0.110 10 146,840,659 $ 0.220 20 73,420,329 $ 0.440 50 29,368,132 $ 1.100 100 14,684,066 $ 2.200
2:1 will probably achieve that Robbo…..;), but at the end of the day the Aussie Institutions, and brokers like Bell Potter will have a big influence on the price the book build and IPO are set at, the consolidation will take place after the results probably, so the IPO prospectus can be put together giving a range, obviously with lot's of input from the experts. Then the Aussie brokers will go hard out selling this gem.
Looking forward to it though…..at any consolidation ratio. :t_up:
Wallace D (Holding)
MJP pre-IPO was $3.00 per share followed by 1:10 dillution to $0.30 to make the price more appealing for a 40 cent IPO.
PYL was 20 cent per share IPO.
Both of these went crazy after IPO. That's what the directors want so their friends can merry make on the profits they will make.
It'll be 10:1 - bet you 100 SNK shares it will be.
I was wondering between 1for5 and 1:20, leaning towards the higher end. That would put the share at 0.44 today, a nice number under 50c and well out of penny dreadful status, but I could only reason it based on market perception. That said, it'll be worth a lot more by then so maybe 1:10 or 1:20 makes more sense.
;)
Maybe depends on what the price might be at consolidation time. A very good year end announcement and a rise in the share price might influence the decision. But my guess is a 10:1 consolidation on the back of an increase in the share price increase following on from some more announcements and a great year end result.