Hi Tibbs,
"So what is the main difference between the two then?
SPP - Rewards all holders equally
Rights issue - Rewards larger holders more. As they have more shares, the pro-rata issue means they receive more rights."
Personally, I see the difference the other way around to what you have stated.
Everybody gets the same amount of shares in a SPP if full $ value taken up, therefore the smaller s/holders get a better deal because their % of stock held to total issue increases more than larger holders.
For a rights issue, everybody gets an equal % of what they already hold, so if the RI is taken up in full by all, then the % held by individuals is unchanged against total issue.
Both of these % views are in relation to dilution, which most s/holders on HC seem to worry about the most, especially in relation to large RI's.
- Forums
- ASX - By Stock
- URA
- ua new issue at 3 cents
ua new issue at 3 cents, page-9
Featured News
Add URA (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, CEO
Anthony Noble
CEO
SPONSORED BY The Market Online