Ann: Clarity launches $121 million equity raise, page-5

In reply to@Vivo

Where do you get "100mil to one big player" from?

" The institutional component of the Entitlement Offer and the Placement will be conducted on 26 March 2024
• Rights shares equivalent in number to those not taken up under the Institutional Entitlement Offer will be offered to certain eligible institutional investors under an institutional bookbuild process
• The institutional component of the Entitlement Offer will be extended to certain existing eligible institutional shareholders in Australia, Hong Kong, Singapore and New Zealand"

It's a bookbuild being offered to multiple institutional +"sophisticated" investors.

Disappointing for retail holders. A total of 48m shares are to be issued which is a dilution of about 17%, but retail shareholders are only entitled to 1 for 33 - so can only make up 3% of the dilution. Doesn't even have the facility for retail holders to take up more than their entitlement in the case that other retail holders don't take up theirs. Probably wouldn't have had to offer as large a discount either if retail holders were given the opportunity to maintain their stake.

That's very poor treatment of retail holders. Its unnecessary too, as the offer is supposedly underwritten. If it was a true underwriting arrangement, retail holders would have at least been given the opportunity of maintaining their relative holding. However, as is usually the case with Bell Potter, they dress up fees and discounts in all sorts of ways. In this case, they get to buy (and then dump for a stag profit as they always do) discounted shares (the ones not taken up by some retail holders) at the expense of those retail holders that would have taken up the shortfall.

Been pleased with Clarity's actions to date, but this is a first strike.