Yesterday Galnaftogaz (GLNG: U/R) announced that its shareholders will consider increasing the company’s share capital to UAH 240 mln (USD 47.5 mln), a 1.5x increase, at their EGM on November 5, 2007. The company intends to issue 24 bln of new shares at par of UAH 0.01 (USD 0.002). The first stage of subscription is scheduled to be held from November 26 (the ex-rights date) to December 10, 2007. The remaining shares, if any, are to be placed during the second stage, from December 11, 2007 to January 25, 2008. According to the announcement, the proceeds will be spent on the expansion of the company’s retail network. Galnaftogaz’s share price picked up 12% overnight and 19.1% in the last five days. Assuming the stock is fairly valued by the market, its current price of USD 0.028 per share (USD 13.85 per DR) should technically adjust to USD 0.012 (USD 6.15 per DR).