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Eqtec Shares Fell 10.6% After Announcing £15M Share Placement To Fund Growth Plans

Simon Mugo trader
Updated 28 May 2021

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Shares of EQTEC PLC (LON: EQT) fell 10.6% after the waste gasification company unveiled plans to raise £15 million via a discounted share placement to fund its expansion into new and existing markets.


The company, which develops and installs waste gasification technology, will raise funds via a share placement subscription and an offer on PrimaryBid. The firm will issue 287.7 million shares at 1.5p each.

Eqtec shares have been on a downtrend since January amid a broader selloff in growth stocks that outperformed in 2020. The company’s shares also suffered from the significant loss recorded last year compared to 2019.

As outlined in previous articles, Eqtec’s fundamentals are pretty solid, and the firm’s management expects its 2021 revenues to be in line with expectations. Earlier this month, the company acquired and recommissioned a 1MWE waste-to-energy power plant in Italy.

Since March, we’ve been tracking Eqtec shares when it was in a triangle that broke out to the downside, allowing the shares to fall to the current support level. Today’s announcement did not result in a massive decline as Eqtec shares are trading close to the 1.5p level.

While we do not know when Eqtec shares shall enter a new uptrend, the company’s future seems quite bright. Investors should patiently wait for the broader markets to get wind of the company’s potential and start buying its shares, triggering the next rally phase.

Otherwise, I would be comfortable buying the company’s shares at current prices, given its promising outlook.

*This is not investment advice.

EQTEC share price.

IG chart of Eqtec share price 28-05-2021
Source: IG

Eqtec shares dropped 10.59% to trade at 1.52p, dropping from Thursday’s closing price of 1.70p.

Should you invest in Eqtec shares?

Eqtec shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Eqtec shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading