Market Reaction: Slightly negative given the issue has been priced at an important discount. Including the dilution associated with the equity issue would reduce our RENAV from C$5.25 down to C$4.60. However, this has removed an overhang on the shares given that the Company had previously indicated that additional funding (from the industry or the market) would have been required near the end of 2015. We like the shares at current levels. They trade at about half our RENAV. The share price al
05 May 2015
US$100 MM EQUITY ISSUE
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US$100 MM EQUITY ISSUE
Africa Oil Corp. (AOI:TSE) | 0 0 0.7% | Mkt Cap: 634.0m
- Published:
05 May 2015 -
Author:
Stephane Foucaud -
Pages:
2
Market Reaction: Slightly negative given the issue has been priced at an important discount. Including the dilution associated with the equity issue would reduce our RENAV from C$5.25 down to C$4.60. However, this has removed an overhang on the shares given that the Company had previously indicated that additional funding (from the industry or the market) would have been required near the end of 2015. We like the shares at current levels. They trade at about half our RENAV. The share price al