Let's not forget that the SPP was for $10m to give shareholders a chance to participate after the capital raising via placement to institutions of $100m at the lower price of $3.75. A $100m rights issue to existing shareholders would have had a massive shortfall and been very negative for everyone.
So it's not a question of fairness, it's a question of practicality. Many placements are done with no opportunity to participate in an SPP.
Last year Ramsey Health Care did a $1.2bn placement at $56 - a sizeable discount to the share price. In the subsequent $200m SPP allocations were scaled back significantly more than the CHN scale back. That's just the way capital raisings go.
Ann: Share Purchase Plan Opens - Letter and Offer Document, page-96
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Last
$1.42 |
Change
-0.005(0.35%) |
Mkt cap ! $550.4M | |||
| Open | High | Low | Value | Volume |
| $1.46 | $1.46 | $1.41 | $4.365M | 3.055M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 2701 | $1.41 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.42 | 11382 | 2 |
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| CHN (ASX) Chart |