How will HGSI IPO on Thursday effect the price of the stock?
HGSI is issuing 12.5 million shares of common stock tomorrow 12/3/09, will this have the effect of diluting the stock price or causing it to rise?
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Answer by sunnygc
It will definitely have the effect of diluting the stock price due to more shares being available. What you will normally find is that prior to the release the investors have already taken into consideration the effect on the short to medium term prospects of HGSI.
Given the recent positive price action on HGSI it looks like the investors believe in this deal enough to more than double the recent share price. WOW.
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