That SPO was right after a div, and that div was weird in that the runup peaked early and the price tailed into the ex-div date, so the shares were already discounted.
And it was before the enormous budget-limit kerfuffle had crippled hope in the markets, so the management got the underwriters to accept a higher than usual price, as it was a better environment for profiting from others' debt.
A couple of weeks later that all changed, and the underwriters have been able to push the offering price closer to the BV. It's quieter now, though. Little talk of budget limits. Good noises coming out of Europe. The stock is clearly pricing-in some optimism. The only question is whether it's irrational exhuberance or informed consent.
Someone get up in the crow's nest and see if you can spy a SPO on the horizon.
Typically the SPO is priced after the market using that day's close as the starting negotiation point between the company and the underwriter. This never happens on a Friday because the underwriter is unwilling to price the stock on Friday's close and take the risk of owning the stock over the weekend, when all kinds of bad stuff can happen, and selling it on Monday. So generally stocks are never priced on Friday night for sale on Monday. The underwriters are also taking orders up to the day of the pricing. Generally neither they nor the ultimate buyers want purchase commitments over a weekend, so any potential orders have to be reconfirmed on a Monday. SO it works out that Tuesday is generally the earliest day and Thursday is generally the latest day.
No, Oct 26 was not the SPO date, but was when the SPO was annouced aftermarket. The actual SPO date was Oct 27, a Thursday.
I've noticed all previous SPOs were annouced on Wednesday aftermarket with the SPO date being the following data, a Thursday except for one, that was annouced on Monday.
Really, can you give me the dates? I dont remember that one, but I was wondering about it the other day. I think the problem here is earnings are too close. on the other hand, they better get off the dime or lose the market.