The raise equates to 55 million shares based upon $50 per share. To put that in perspective, it represents about 5 days of trades on the open market which proably means about 10 weeks of actual trading once you back out 10x of algo trading that grossly distorts the real volume.
What does that mean for the ENB share price?
We will likely see a short term dip in the ENB share price. If I remember correctly, the ENB share price immediately dropped about $3 per share when the company did a similar raise at the time the Natgas Distribution deal with Dominion was announced. That raise was for $4.6 billion ($4 billion plus a 15% greenshoe that was fully subscribed).
I think the price drop will be smaller this time around due to:
* the size of this raise is smaller (I expect it will be oversubscribed as well so it will top $3 billion)
* I expect the market will see the funding as the last step in finalizing the funding shortfall for the Dominion acquistion
* The timing of this deal is likely a strong indicator that ENB feels confident that the 2nd and 3rd legs of the Dominion asset acquistion will close and probably pretty soon. I expect the market will see that in a bullish light.
Very few if any of us are likely to get a piece of the raise. If the ENB share price does dip, I think it would be a buying opportunity.