How do I calculate how much a share price will go down when new shares are to be issued?
I have questions about when a company issues another offering. From what I understand, this dilutes shares and reduces the share prices.
- Often times when it's announced about another offering, they also announce the target asking price. So would the shares become this price in the near future?
- This company, $WVE, has a market cap of $666.1M, and it's announced that they'll be issuing $175M more. Does this mean that the new share prices will be: ((666.1)/(666.1+175.0)) * $7.79 (which is the current share prices as of September 24th at 5:20 PM ET), which is $6.17/share?
- In general, how do we estimate the new share price when an other offering is performed?
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