Will it try again later?
Sygnia has announced the terms of its rights issue to pay for the Deutsche Bank X-trackers. The good news is that the company is only raising R160m whereas it was expected that it would look to raise the full R320m. The bad news is that the new shares are being issued at 900c as the Sygnia share price has fallen some 37% so far this year. The 900c level is just 60c above the listing price of 840c back in October 2015. Ideally, it would have wanted to raise the money with a much higher share price, meaning new shares could be issued at, say, 1 500c. But a lower share price means a lower issue price and to keep dilution to a minimum, the company is only raising half the money. This then raises the question of whether it will come back to market later when the share price is higher to raise the rest of the money. Maybe it will do this for the much talked-about UK expansion?