They announced this a few weeks ago & the stock dropped. They withdrew it last week. Now they are refilling. They will probably cancel the filing in a few weeks. Just kidding. The shares are undervalued & everyone knows that. The announcement today is the same announcement that happened a few weeks ago. I suspect that some of the sales will be to funds looking to buy blocks of stock without market risk. While we can see a small amount of pressure on the stock remember it only 25mm shares or about 1 week of trading. Either way this stock is going to 10. Enjoy the ride
I completely agree that these will probably be sold to institutions who want bigger blocks of shares without greatly impacting the market price trying to buy millions of shares. That is bullish that there are institituiosn who want large blocks of shares.
But, it would seem there are the Innolux shares which can be bought and that would help Innolux get a good price also without affecting the market. So, that should fill the first 25 million ADR shares of need.
Now, back to HIMX and their shelf offering. HIMX filed and then said they would probably not implement the buy until funds were needed. So, this could be bullish in the sense that there is a huge business opportunity they are choosing to pursue. But, HIMX needs to be a bit clearer about if this is the same shelf offering and if this is just for future contingency or what purpose they now have if they are going to implement it in the near future.
Clear communications is important and seems to be missing here. This could be the same shelf offering they plan to have approved but not implement or this could be something else. Clear this up HIMX.
But, shareholders should not jump to conclusions as either case seems somewhat bullish to me. And, it brings in lots of cash and increases the cash value per share as these will be priced around $7 and cash per share is quite a bit below that............so the average increases greatly.