Ann: Clarity launches $121 million equity raise, page-17

Guys,

Shareholders should never be ok with "being able to buy more on market because the price is likely to fall to the offer price".

If a capital raise is done for the benefit of existing shareholders - which it absolutely should be every time - then the market price should not fall to the issue price. Existing shareholders should benefit from the discount, and new shareholders (particularly institutions and sophisticated shareholders) who want to get in to the "now well capitalised" company, should have to pay a premium on market.

If the market price falls below the Theoretical Ex-Rights Price, then management / board has failed existing shareholders.

1. Underwrite the offer (no problem paying an underwriter a reasonable fee to do so)

2. Offer existing shareholders (both retail and existing institutions) as much of the raise as they want

3. Then the underwriter sells as much of the shortfall as it wants to new "institutions and sophs". If the underwriter manages to sell for a premium, good luck to them. If the underwriter is stuck with the shortfall or has to sell them at a discount, well that's the risk of underwriting and why they were paid a fee in the first place.

To short-change existing retail shareholders (many of whom took up the slack of Genesis Care and other founder shareholders who have reduced their stake since listing) is poor form.