Normal
On the 15th of December IAG announced a share purchase plan with shares on offer in parcels of $1500, $3000, $4000 or $5000 for a purchase price of $5.50 which is about a 15% discount on the current market price of 6.35.At the moment im leaning towards applying for $3000 - $5000 in the offer, but have no practical experience in rights issues so would love to know how others are treating the offer.Im assuming with shares sold at $5.50 it will dilute the share price lower then the $6.30's its currently at, so if i avoid the issue my current position would shrink, but if i take up the offer then would the share price drop roughly equal the gain on my new shares and leave my profit the same but with a larger position size? I believe thats the theory behind share issues, but id love someone with experience to help me out here.Thanks.
On the 15th of December IAG announced a share purchase plan with shares on offer in parcels of $1500, $3000, $4000 or $5000 for a purchase price of $5.50 which is about a 15% discount on the current market price of 6.35.
At the moment im leaning towards applying for $3000 - $5000 in the offer, but have no practical experience in rights issues so would love to know how others are treating the offer.
Im assuming with shares sold at $5.50 it will dilute the share price lower then the $6.30's its currently at, so if i avoid the issue my current position would shrink, but if i take up the offer then would the share price drop roughly equal the gain on my new shares and leave my profit the same but with a larger position size? I believe thats the theory behind share issues, but id love someone with experience to help me out here.
Thanks.
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