Synairgen Share Discussion Threads

[asteria1] 02/11/2020 09:08

Placing misconceptions..

There seems to be a lot of people believing that the £80M placing was made up exclusively of institutional investors. In fact there are many private investors who participated. The only regulatory requirement to participate in placings is that you must elect to be a "professional" investor which is a fairly low bar for any frequent trader / investor.

My broker for example applied for £5M of placing stock and received a 50% allocation i.e. £2.5M and this was all for private investors. The majority of that stock has already been flipped - they were selling relentlessly immediately they had the allocation. Unfortunately this is typical of the "hot" money that often chases stocks like this which makes it a much more volatile ride for the long term investor.

Without doubt there will be some institutions in the mix given the size of the placing, but don't be fooled into thinking they won't flip some stock for a quick profit either.

[asteria1] 02/11/2020 08:35

Yes fully subscribed. There wouldn't be a scale back as the entitlement was 1/37 shares and that is your entitlement. There was a facility for over subscription and this will have picked up the difference between those that didn't take up their entitlement so therefore the open offer was filled entirely.

[slogsweep] 02/11/2020 08:21

open offer fully subscribed then? no mention of any scale back so was it undersubscribed and the institutions picked up the rest?

[yourwrong] 02/11/2020 07:52

What a rock star

[rock star] 02/11/2020 07:50

Once a share price drops below the placing price it tends to act as a resistance point going forward.

Hopefully there will be some good news flow in the coming weeks to give the price a boost.