Will it try again later?

Finweek English Edition - - MARKETPLACE SIMON SAYS -

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?

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