A: It is a timely question because there will certainly be an overhang of Woodside stock from such a large capital raising.

On paper, the instructional offer was quite well supported, with a take up rate of over 90%. The shortfall was cleared in a book-build at $29.60, a discount of just 1.7% to the theoretical ex-rights price.

I like the sector, I like the company’s assets, but I am not 100% convinced as to why they needed to raise so much money. I will be taking up my rights and I guess if I had no exposure to Woodside, this isn’t bad buying territory. My hesitation is that the overhang from the rights issue might put a cap on the share price in the short term.

Regards