Hello IQ team, when a company having a propose private placement, the EPS is diluted.
My understanding is that the total number of shares increased…and EPS will be reduced, which is not so good as I understood from the training.
Appreciate your views of sharing.
Yes, at the same time, there is no cash call from retail investors from us.
Generally, as long the private placement is not a very significant percentage of the total amount of shares is generally fine. Or ideally not at a significant discount.
It would generally be a good sign if the placement is done to help the company’s growth.
There are also times when the company does a private placement because there’s not enough retail interest to be worth it.
Hope it helps.
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