What is the size of the share increase relative to the current float and recent trading volume?
Short answer:âŻThe pressârelease you cited does not contain the quantitative details needed to calculate how large the underwritersâ additionalâshare purchase will be relative to Auraâs (AURA) current float or to its recent trading volume.âŻWithout the specific numbers for:
- The size of the underwritersâ option (i.e., how many additional shares are being purchased)
- Auraâs current float (the total number of shares outstanding that are freely tradable)
- Recent average daily trading volume (shares/day) or the most recent dayâs volume
we cannot compute a percentage increase or a âshareâincreaseâtoâfloatâ ratio, nor can we express the increase as a multiple of recent trading volume.
How you would calculate the âsize of the share increaseâ if you had the data
Metric | Data you need | How to calculate | What the result tells you |
---|---|---|---|
Absolute share increase | Number of shares the underwriters are buying (e.g., 5âŻM) | =âŻNumber of shares purchased | Gives the raw size of the new issuance |
Relative to current float | Current float (e.g., 100âŻM) | % Increase = (Shares purchased Ă· Current float)âŻĂâŻ100% | Shows how much the float will be diluted by the new shares |
Relative to recent trading volume | Average daily trading volume (e.g., 2âŻM shares/day) | Daysâofâvolume = (Shares purchased Ă· Avg. daily volume) | Indicates how many days of typical trading the new issuance represents. A larger number could signal more market impact. |
Example (illustrative only):
- If the underwritersâ option = 4âŻM shares
- Current float = 80âŻM shares
- Avg. daily volume = 1.5âŻM shares
Then:
- % of float = (4âŻM Ă· 80âŻM)âŻĂâŻ100âŻ% = 5âŻ% increase in float.
- Daysâofâvolume = 4âŻM Ă· 1.5âŻMâŻââŻ2.7âŻdays of trading volume.
What to do next
Locate the full press release (or the SEC filing, e.g., FormâŻ8âK, Sâ1, or prospectus supplement) that accompanies the headline. It will typically list:
- The exact number of additional shares the underwriters are exercising.
- The existing outstanding share count (or âfloatâ if itâs a publicâcompany filing).
- Recent trading data (often found in the âMarket Informationâ section of the filing or on a market data provider).
- The exact number of additional shares the underwriters are exercising.
Gather the current float and recent trading volume from a reliable market data source (e.g., Bloomberg, FactSet, Reuters, or the âKey Statisticsâ page on a financial data platform).
Plug the numbers into the calculations above to get the relative size.
Bottom line
Based strictly on the information youâve provided, we do not have the required figures to determine the shareâincrease size relative to Auraâs current float and recent trading volume. To produce the specific percentage or âdaysâofâvolumeâ figure, youâll need the exact number of shares the underwriters are buying, as well as the latest float and average daily volume numbers. Once you have those, the simple calculations shown above will give you the answer.