NIB Holdings (NHF) fell -11.98% yesterday following a $150m equity raise at $6.90, the stock closed ~4% below the placement price which wouldn’t cheer the fund managers who often enjoy easy pickings from capital raisings. The raise is to fund acquisitions with the first company on the menu being Maple Plan as the health insurer looks to enter into Australia’s National Disability Insurance Scheme Sector.
Interestingly this has been yet another stock which popped to new highs, this time in late August, before falling ~20% i.e. new highs has been a dangerous position for many companies over the last 12-months.
- We see no reason to chase NHF into the current dip, a test closer to $6 wouldn’t surprise.
MM is neutral NHF ~$6.60
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