(DES.L) Desire Petroleum PLC Buy/Sell

81.75 -2.00 (-2.40%) Down arrow Add to portfolio Set Alert Level 2 Desktop Trader

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Author	OilRocks View Profile \| Add to favourites \| Ignore
Date posted	2009-11-04 10:51
Subject	Re: Open Offer View parent message
Votes for this Posting	Voted 2 times. Not voted down.
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From the £20 mill they intend to raise it's a 1:8 offer. As DES said you may apply for more. It looks like the maximum you can apply for is 1:1. The minimum you will get is 1:8, but if 1/2 the shareholders do not take up the OO you will get 1:4, or if 7 in 8 share holders decide not to take the OO up you would get 1:1. I would estimate you will get a maximum of around 1.5 to 1.75:8. If you were offered 1:1 it would mean the OO was hopelessly undersubscribed and have a negative impact on the SP, as it would fail to raise the £20M and show a lack of confidence in DES. As for the current SP, it's a little dissapointing but it's not really unexpected, i would expect another dip to a minimal premum over the OO price as people who borrowed to take up the OO sell the OO shares to recoup the money and not lose the offer of 'free money'. IMHO etc etc
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