This strategy can also work for rights issues if not everyone takes up their rights.
BOQ recently completed a 1 for 9 issue at $10 when the stock was trading around $11. For some reason there were lots of left overs and most applications for extras were accepted in full. So even if you were eligible to get 1 share, you could have had as many as you wanted. From memory I think the same happenned with Bluescope earlier in the year.
