Ubisense (LON:UBI), Was not surprized to see it raise funds, given the level of recruitment going on, and pleased that the discount was not large, but would have liked the oppurtunity to participate.
The oppurtunities for UBI are many and if the benefits in production quality and quantity are seized upon, then i expect to see this stock grow steadily. Hopefully over the next year or so we will see some of the traffic lights turn to green.
extract from rns 2apr14
The Company announces completion of a placing of 1,929,589 New Ordinary Shares at a price of 220 pence per New Ordinary Share to raise approximately £4.2 million of gross proceeds
· Net proceeds from the Placing will be used by the Company for growing the Solutions Business
· The New Ordinary Shares to be issued in connection with the Placing are equivalent to approximately 8.4 per cent. of the Company's existing issued ordinary share capital
· The Placing Price represents a discount of approximately 4.3 per cent. to the closing price of Ubisense's ordinary shares of 230 pence per share on 1 April 2014
Hi,
In my view this is an example of a Placing that is OK - because;
a) The discount to market price is very small, and
b) The dilution is only small too - 1.9m new shares are being issued, which is less than 10% of the 23m shares in issue.
On that basis, I think this one is fine.
You can buy in the market for a few pence more than the Placing price, so there was no need to do an open offer in this case, in my opinion.
Regards, Paul.
