Thanks - I've read it and as i understood it they will sell some of the shares to sponsor future expansions. Is this correct? Is this a risk? Or does it simply mean that supply-demand ratio will increase and therefore it would explain the price drop?
They have done quite a few of these before as they are expanding rapidly so need the capital to buy/expand. I would not say it a risk as they are increasing the equity of the company, and raising the capital at a good price. I would say the share is fairly expensive and price just drifted down slightly to the level of the share issue. Still a very good share in my opinion, not sure about price level though, it is trading well above NAV, but then growth forecast at 15% for quite a few years, and a rand hedge.