Answer:âŻThe companyâs announcement does not disclose the exact number of shares being offered or the specific price at which they will be sold. In the brief statement released by ArâŻisâŻMining, the only information provided is that a secondaryâshare transaction is underway, and the volatility in the stockâs price is linked to that transaction. No quantitative details (e.g., âXâŻmillion shares at $Y per shareâ) were included in the summary.
Trading implications:âŻBecause the size and pricing of the secondary offering are not disclosed, market participants should treat the situation as âinformationâdeficient.â In such cases, the market typically prices the new shares at a modest discount to the prevailing market price to ensure the transaction is completed without further destabilising the share price. Until the company files the detailed prospectus or a press release with the exact terms, traders should monitor for a formal filing (e.g., an Sâ1 or prospectus supplement) that will spell out the number of shares, the offering price range, and any lockâup or underwriting arrangements. In the interim, the recent volatility may present shortâterm trading opportunitiesâe.g., buying on dips if you believe the dilution impact is modest and the companyâs fundamentals remain intact, while staying mindful of potential dilutionâdriven pressure on the stockâs price.