EBOS Group Ltd (ASX:EBO) has announced a trading halt.
There are a few reasons why a stock would go into a trading halt. It is generally ahead of a news announcement.
EBOS Group Ltd has requested a trading halt as the Company proposes to announce a material transaction and undertake a fully underwritten equity placement of approximately NZ$674 million (A$642 million), and has engaged Macquarie Securities (NZ) Ltd as underwriter and to assist it with the placement bookbuild. EBOS also proposes to announce that a non-underwritten retail offer will follow the placement.
Trading halts are typically enacted in anticipation of a news announcement, to correct an order imbalance, as a result of a technical glitch or due to regulatory concerns.
Halts may also be triggered by severe down moves, in what are called circuit breakers or curbs.
The trading halt will remain in place until normal trading commences on December 13, 2021 or when the company announcement is made.