Can somebody please explain

..... to me the logic in having a capital raising of $800 mio, that manages to wipe-off $600 mio of shareholder value at the same time?

Thats been the net effect of the recent issue - would not a debt issue been better, and cheaper to service?

With QAN going ex-dividend tomorrow the shares should open at about the same level as the issue price.

Where does that leave the insto's who in their greed for a fast buck dumped out their allotment - whilst at the same timing decreasing the value of their existing holdings.

Or will we see mass buying by the insto's that could not get the quantity of new issue stock they wanted - remember QAN and the brokers both boasted how demand far exceeded supply - now's their chance!!

Now we all know that once a new issue has been absorbed into the market the stock should gravitate towards its pre-issue price. But what if that does not happen? The retail punter will hardly jump to take up their entitlement at $4.20 if QAN is trading below that level in a months time.

If QAN is below $4.20 in a months time then it could be nasty - the insto's who were behind the dumping of QAN will have devalued their combined holdings by about $450 mio, and secondly the retail punter will not take up the issue - leaving Qantas having raised only $600 mio of the $800 mio they wanted (needed).

Interesting times ahead.