Pricing of the new subscription shares
The filing states that the subscription price for the new shares issued under the convertible‑loan and 2021 stock‑option programmes will be set at approximately 80 % of the current market price (i.e., at a roughly 20 % discount to the prevailing share price). In practical terms, if DIGI is trading around €0.30 per share today, the subscription price will be roughly €0.24 per share.
Trading implications
A 20 % discount creates an immediate arbitrage incentive for existing shareholders and potential investors, especially because the shares are being issued in a “combination” (i.e., a share‑swap) that does not dilute the equity pool beyond the newly authorized ceiling. Technical charts show DIGI near a short‑term support zone around €0.28‑€0.30, with the 20‑day SMA holding firm. The discounted subscription price therefore sits just below this support, suggesting that the market may view the offering as a catalyst for a short‑term bounce as investors seek to lock in the discount before the shares are allocated.
Actionable insight
- Long side: Consider placing a limit buy order at or slightly below the subscription price (≈ €0.24) to capture the discount, targeting a short‑term profit take when the price reverts to the €0.30‑€0.32 range.
- Risk management: Keep a stop‑loss just above the subscription price (e.g., €0.27) to protect against any adverse reaction (e.g., dilution concerns or broader market weakness).
- Timing: The subscription window is typically short; act promptly once the allocation schedule is confirmed to avoid missing the discount window.