An extract from above link as there has been plenty of discussion on if we are being diluted. Well IMO no if you take up your full entitlement and below seems to confirm that.
A rights issue is very fair because every shareholder has the opportunity to take up new shares in proportion to their existing holding. This means that their relative interest in the company is not diluted. If the shareholder decides instead to sell the rights, then there is some compensation for allowing the dilution to occur.
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