Ann: Dacian Launches Fully Underwritten A$40m Equity Raising, page-4

I don't really get upset with Capital raisings. What does annoy me is the vagueness of this type of capital raising with respect to existing shareholders. I don't like open-ended share offers, where you can apply for $30 000 but with a scaleback so that you may only be able to get say $1000.

The current market capitalisation of DCN is $247 M. Yet the total CR available to share holders is $5M; or 2% of the Market Capitilisation. One could argue that this means if you have say
$30 000 worth of shares, and apply for $30000 more, your minimum likely allocation is $600. I tend to think only half the investors will want to participate, so this may push up to $ 1200; and so optimistically you should apply for $2000; definitely not $30 000.

Many of those who apply for $30 000 will therefore end up with say $28 000 'dead money' over 1-2 months.
So I personally think the Company should have simply made a 1:20 offer, with hope of raising $10M. To me, this is advantageous to both the Company and investors - whereas the current approach provides lots of uncertainty - and I think it is somewhat patronising. (DCN saying you can invest $30000 when realistic most investors can't)