qbe - spp, page-15

I don't think most retail shareholders would object to a pro-rata allocation based on their existing holdings if that's what the company has decided, but what they are entitled to have an issue with is the lack of more detail necessary to enable everyone make a judgement whether or not to apply for a small allocation expected.

To be enticed for full application of $15,000 per holding and then deny prompt refund of unallocated funds is a treatment, I bet, the institutional shareholders did not have to put up with.

I think ASIC should look at not only the question of heavy dilution of existing shareholders in some capital raisings (eg Bank of Queensland recently), but also the question of companies keeping the benefit of shareholders' application monies for extended periods without adequate information re allocation methodology upfront. Surely the companies can come up with an allocation formulae upfront and leave it to shareholders to act as best suits their respective situations.