Unless I am missing something this is in the best interests of long term holders not detrimental to them.
I think offering rights issues that are open for a few days prior to the record date, allowing new holders/traders to benefit, is why a sp tanks once the shares are issued, as these new holders/traders sell out once they are issued for a quick buck driving the sp down.
"Of key interest is a process used by companies ranging from Asciano to Wesfarmers that offers a window of several days between announcing a rights issue and the cut-off for shareholders to qualify.
This allowed new investors to move on to the registry, entitling them to buy hundreds of new shares often at a 7.5 per cent discount to existing prices.
But Brickworks had to close the window earlier than expected when its shareholder base ballooned from just over 3000 to more than 10,000. The increased base is expected to result in longer-term investors having their application reduced when shares are allotted early next month."
UNI Price at posting:
$1.38 Sentiment: LT Buy Disclosure: Held
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