fairer deal for holders in capital raisings

ON OCTOBER 8TH 2013 the ASX is launching the new ASX BOOKBUILD FACILITY.
Australian shareholders association has long been of the view that Renounceable rights Issues are the preffered method of capital raisings.
That said, almost half the capital raised by Australian listed companies over the last 5 years has been raised using placements.
Boards have typically chosen placements over rights issues where they are of the view that bringing new shareholders is in the interests of the company.
The issue is not so muchthe existance of a discount to the prevailing share price, as incoming investors require some enticement to provide liquidity in a capital raising, but whether the pricing amount to UNFAIR dilution, and weather the allocation process is fair and transparent.

KEY POINTS
ASX book build facility launches on October 8th 2013.

Under ASX BookBuild, more investors will have access to capital raisings.

ASX BookBuild provides a more transparent process for pricing and allocations.

Investors will see a live bookbuild price and allocations are made according to defined rules.