I encourage you to review NSB Advisors' 13-F filings for the last few years. Every quarter, they add more and more PMFG shares. It doesn't appear to matter what the price is - they just keep adding (it looks like NSB bought another 250,000 shares or so in the fourth quarter). If you take PMFG's shares outstanding, and then subtract the shares owned by NSB Advisors and the shares owned by William Nicklin personally, as of Dec. 31, there are only 3 million or so shares owned by everybody else. This reduction in the float of PMFG shares has undoubtedly led to the price rise over the last couple of years to the $27 that we saw last week.
This offering will effectively double PMFG's float. With greater liquidity in the stock, the stock will more accurately reflect the true value of the company, which is a heck of a lot lower than $16 per share in my opinion (probably closer to $4.00, or maybe $4.50).