Two points of general clarification as I understand it:
(1) Your shareholding - as in the number of shares you hold - will not reduce following the equity raise. If you hold 1 share today, you will still hold 1 share following the equity raise.
(2) Equity raises cause more shares to be issued. Dividend per share is therefore impacted as profit gets divided amongst a greater pool of shares. While your ultimate dividend payment is determined by how many shares you hold, your share is not treated any differently to another share.
Happy for anyone to correct the above general comments.
The above is not financial advice and I do not hold an AFSL. You should always do your own research.
ARU Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
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