capital raising, page-13

Capital raisings can be done very well or very badly and can give a good indication of management skill, the markets perception of management and the overall sentiment towards the company.

I have seen a recent capital raising to sophisticated and insto's well above the weighted average closing prices for the previous few weeks (CCU). This shows that investors have a strong belief in the future of the company and are willing to pay a premium to secure a large portion of shares.

I have also seen raisings done poorly which badly damages the reputation of management and dints investor confidence in the company.

So I guess we shall see!