Pyne Gould Corporation rights traded briskly in a 2c to 2.8c range on debut yesterday, but are expected to trade more heavily and at a lower price in coming sessions as private investors who can't afford to exercise them dump them.
PGC will raise $237 million in its fully underwritten,renounceable, six-for-one rights issue which forms the first part of a capital raising which may secure it up to $270 million.
However, the company's share register is currently dominated by long-term retail investors, many of whom will find it difficult to pay the 40c per new share required to remain undiluted.
That factor was cited by brokers as PGC shares plummeted to an historic low of 50c ahead of rights trading this week.
Turnover in the rights yesterday, their first day on market, was just under 11.4 million.
