"ok, lets say the SP was $1.50
The fully renounceable entitlement offer was $1.40
The SP goes down to $1.30 and stayed there for a while...
What are the rights worth now - and who will buy it? What negative connotation would this have to the company?
Are there usually any underwriters?
How will the company get their money?"
But why will the share price go to $1.30?
All thing being equal, and if the raising is managed properly, the share price should go to TERP, which would be somewhere between $1.40 and $1.50, depending on the ratio of new shares being issued to existing shares in issue.
As for being underwritten, it usually is, but doesn't have to be.
As for "How will the company get their money", I'm afraid I don't know what you are asking me. You mean, how does the company physically get its money from shareholders?
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