The S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. In afternoon trade, the benchmark index is down 0.6% to 7,337.7 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:
Afterpay Ltd (ASX: APT)
The Afterpay share price is down 4% to $96.07. This follows another poor night of trade for the Square share price. As Square is hoping to acquire Afterpay in an all-scrip deal, the value of the takeover falls when its shares decline. Unfortunately, the Square share price has fallen so much recently that its offer now represents a premium of less than a 1% to the Afterpay share price prior to the offer.
AVZ Minerals Ltd (ASX: AVZ)
The AVZ share price is down over 8% to 59 cents. This morning the lithium developer announced the completion of its institutional placement. AVZ has received firm commitments to raise $75 million (before costs) at a 22% discount of 50 cents per new share. These funds will be used to progress towards a Final Investment Decision (FID) for the commencement of project development at the Manono Lithium Project in the Democratic Republic of the Congo.
Irongate Group (ASX: IAP)
The Irongate share price is down 5% to $1.57. This decline has also been driven by a capital raising. This morning the real estate investment trust announced the completion of a $50 million institutional placement. These funds were raised at a 6.3% discount of $1.55 per new share. Management will use the proceeds to partly fund the acquisition of an office building located at 510 Church Street, Cremorne VIC.
Santos Ltd (ASX: STO)
The Santos share price is down 3% to $6.43. This is despite the energy producer announcing that its merger with Oil Search Ltd (ASX: OSH) has become effective today. Oil Search shareholders will receive 0.6275 new Santos shares for each Oil Search share held on the record date of 14 December 2021.
The post Why Afterpay, AVZ, Irongate, and Santos shares are dropping appeared first on The Motley Fool Australia.
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More reading
- Done deal: Santos (ASX:STO) and Oil Search (ASX:OSH) merger becomes effective
- The Afterpay-Square takeover deal is worth $9bn less now
- Could this ASX share really be the next Afterpay (ASX:APT)?
- ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update
- Why is the AVZ (ASX:AVZ) share price crashing 15% today?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended AFTERPAY T FPO. The Motley Fool Australia owns and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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