A little bit of good news (and bad news) depending on the point of view.
1. SVA announced that the underwriters will be exercising their option to purchase an additional 1.5M common shares to cover over-allotments.
2. This is good news as there is demand for the shares.
3. The downside of course is the dilution.
4. So, where do we go from there. My bet is that the price will not fall much further. We should probably see some support coming.
I have deliberated on posting on SVA after news of its offering came out.
With yesterday closing, the chart still shows that the price level is intact despite the dilution due to the new shares offering.
We can see that the price started off low (gap down) and went on to close high. The final closing price sits on top of the Tenkan sen (red line).
Let’s see if it has any chance to break the 7.80 resistance (possibly through good financial results?)
