Actually, the issuance of new shares is a follow-on offering but is commonly referred to as a secondary offering. A secondary offering is the sale of a large block of existing shares. While not dilutive, they do increase the float (by 14m shares in this case) which may, or may not, affect the stock price through the change in supply/demand.
Its probably more about the 14m share secondary offering at 26 than about BREXIT. Very unusal for a stock to go up on announcement of secondary. If I took shares at 26 and could sell them at 29 the same day, I would jump all over it. I sold at 28 on the day of the secondary announcement and will start getting back in today. I actually thought I will get back in at around 26 but it might not get there, except for possibly tomorrow when it goes x-divided.
Since I am a WIN shareholder also, I would want WIN to make a prudent choice of selling at a 52 week high rather than holding out for a hoped-for few more points while the clock is ticking. A FED hike in rates and BREXIT are potential negatives lurking out there. WIN must have felt it was a prudent move since they took about $25 after fees.
"Securities underwriting refers to the process by which investment banks raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt capital). The services of an underwriter are typically used during a public offering.
This is a way of distributing a newly issued security, such as stocks or bonds, to investors. A syndicate of banks (the lead managers) underwrites the transaction, which means they have taken on the risk of distributing the securities. Should they not be able to find enough investors, they will have to hold some securities themselves. Underwriters make their income from the price difference (the "underwriting spread") between the price they pay the issuer and what they collect from investors or from broker-dealers who buy portions of the offering."
Actually, companies use secondary offerings at a discount because the underwriters guarantee the price. In other words, Citi, guaranteed the price and has to take the shares if they can't be sold to others in the offering. So any shares left that are held by Citi will be sold by Citi in the open market. I am sure Citi would readily sell any of those shares at prices at or above $26. There is no way of knowing how many, if any shares, Citi had to take.
Check the chart. CSAL stock selling at 52 week high. Can you be sure that it would move higher over the next eight months? As the deadline neared, traders would be aware of the 14m shares looming out there and trade the stock down. WIN made the correct decision for its shareholders.
I sold today at 28.02. 10.7% of the float is being sold at 26.01 and this is to debt holders who do not necessarily want to hold the stock. I look for the stock to trade down to near the secondary offering price as these holders tend to sell, especially at prices above the offering price. I intend to get back in at 27 or lower. I love the stock, just have to trade around secondary offerings like this.