Homepage
PR Newswire
28-03-2024, 10:06 AM
Hi weijian,
This rights issue is a small one, 1 for 14 and therefore the dilution to NAV is not too large. The fact it had been offered as a rights issue I think is mainly because of the discount to market price. If they had issued those shares at a premium to the market price (as they have done previously), they would have just do a placement issue.
Most of the money raised in the past 2 years had been invested into new and existing portfolio companies. As you can see, portfolio valuation had gone down significantly in the past year. Indeed, their performance had been disappointing to date. But the past year had not been good for VCs and I have cited Hotung result too previously for their Israel portfolio.
I don't think their strategy is to keep each and every company in the portfolio alive. It just couldn't work. The focus is to help advanced stage portfolio companies exit. Remember they have just switched into this strategy for only one year, and then the war broke out. It was unfortunate, but I guess more time is needed to see the benefits of their new move.
This rights issue is a small one, 1 for 14 and therefore the dilution to NAV is not too large. The fact it had been offered as a rights issue I think is mainly because of the discount to market price. If they had issued those shares at a premium to the market price (as they have done previously), they would have just do a placement issue.
Most of the money raised in the past 2 years had been invested into new and existing portfolio companies. As you can see, portfolio valuation had gone down significantly in the past year. Indeed, their performance had been disappointing to date. But the past year had not been good for VCs and I have cited Hotung result too previously for their Israel portfolio.
I don't think their strategy is to keep each and every company in the portfolio alive. It just couldn't work. The focus is to help advanced stage portfolio companies exit. Remember they have just switched into this strategy for only one year, and then the war broke out. It was unfortunate, but I guess more time is needed to see the benefits of their new move.