QAN 2.95% $6.98 qantas airways limited

Can somebody please explain

  1. 10,372 Posts.
    lightbulb Created with Sketch. 4
    ..... to me the logic in having a capital raising of $800 mio, that manages to wipe-off $600 mio of shareholder value at the same time?

    Thats been the net effect of the recent issue - would not a debt issue been better, and cheaper to service?

    With QAN going ex-dividend tomorrow the shares should open at about the same level as the issue price.

    Where does that leave the insto's who in their greed for a fast buck dumped out their allotment - whilst at the same timing decreasing the value of their existing holdings.

    Or will we see mass buying by the insto's that could not get the quantity of new issue stock they wanted - remember QAN and the brokers both boasted how demand far exceeded supply - now's their chance!!

    Now we all know that once a new issue has been absorbed into the market the stock should gravitate towards its pre-issue price. But what if that does not happen? The retail punter will hardly jump to take up their entitlement at $4.20 if QAN is trading below that level in a months time.

    If QAN is below $4.20 in a months time then it could be nasty - the insto's who were behind the dumping of QAN will have devalued their combined holdings by about $450 mio, and secondly the retail punter will not take up the issue - leaving Qantas having raised only $600 mio of the $800 mio they wanted (needed).

    Interesting times ahead.
 
watchlist Created with Sketch. Add QAN (ASX) to my watchlist
(20min delay)
Last
$6.98
Change
0.200(2.95%)
Mkt cap ! $10.40B
Open High Low Value Volume
$6.86 $7.00 $6.84 $105.5M 15.18M

Buyers (Bids)

No. Vol. Price($)
7 197335 $6.97
 

Sellers (Offers)

Price($) Vol. No.
$6.98 3000 1
View Market Depth
Last trade - 16.10pm 18/11/2019 (20 minute delay) ?
(live)
Last
$6.98
  Change
0.200 ( 2.80 %)
Open High Low Volume
$6.86 $7.00 $6.85 4942688
Last updated 15.59pm 18/11/2019 (live) ?
QAN (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.