Market cap/dilution pre and post secondary disconnect
Number of outstanding shares will increase by 16,375,000, for a total share count of 89,765,000 shares. On April 9, 2013 prior to the secondary announcement, PPS was $7.24 and outstanding shares totaled 73,390,000 with a corresponding market cap of $531,343,600.
Post secondary, factoring in dilution and market cap being equal to April 9th, the corresponding PPS should be $531,343,600/89,765,000=$5.92
So all things being equal, PPS should have been discounted by 18% from the April 9th close to $5.92, and not by 26% as reflected by current PPS of $5.40. Furthermore, SGYP will have $90mil of additional cash - this being currently discounted to zero by the market. To make matters worse, underwriters had no choice but to reduce the offering price from a baseline price of the knee-jerk sell-off on April 10th, where it closed at $6.01.
On the brighter side - once the noise settles, a bounce-back to the $6 range near-term is inevitable.