re: share price after preferential rights
I'll do a weighed average to answer this, "Won't the share price drop after the record date to the subscription price therefore >34."
I'm assuming that additional shares force a drop in share price in proportion to how many shares are offered and that market capitalization remains the same.
The calculation-
There are 20,750,000 outstanding right now. They are offering up to 4,189,286 shares. Using a weighed average we get-
(20,750,000 * 40 + 4,189,286 * 30) / (20,750,000 + 4,189,286) = $38.35 a share after the preferential offering.
So, with as much confidence as I have in the market, (clearing my throat nervously), those that have bought in at $40 and have shares on the date of record, and fully use their preferential rights, come out ahead at least by 11%.
