Friday, July 1, 2016

Why Ezion Drop so much today? Rights Issue?

Why Ezion drop so much?

Price drop because of selling (this is my usual answer). So the question is why people are selling? 

"proposed a renounceable underwritten 3-for-10 rights issue of up to 487.31 million new shares at an issue price of 29 Singapore cents for each rights share, which will raise up to S$141.3 million". - Business Times

"Funds raised from the issue could be used to help fit out and re-purpose its fleet, buy marine assets and boost operational flexibility, it said in a statement late on Thursday (June 30).
Ezion proposed issuing up to 487.3 million rights shares at S$0.29, or a discount of about 44 per cent to its closing price on Thursday." - straitstimes
What are Rights issue 
an issue of shares offered at a special price by a company to its existing shareholders in proportion to their holding of old shares.

Will i Subscribe the rights?

Click here for Our previous post - common reason people subscribe to the rights

Noble Group - Rights issue should you subscribe?

When Ezion is going down from $1.99 - Time to sell, most people never sell

When Ezion is going up from 95cents - Time to buy, most people never buy

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