It's late - and I'm tired, but this bit isn't quite making...

It's late - and I'm tired, but this bit isn't quite making sense...

The aim of the rights issue is to issue 448,804,713 new shares at 3.4c to raise $15,259,360. 51% of shares in Alara are held by shareholders outside of Australia and New Zealand, and therefore they can't participate in the offer at the initial rights stage, but their 5 for 8 allocation of shares is effectively placed with the underwriter into the shortfall pool (see 4.5(b) in the Prospectus), and then according to the last paragraph of 7.9 - when the underwriter sells their shares the underwriter will then pay the ineligible shareholder 3.4c per share for each of their 5:8 allocation of shares.

So to me that reads like -

As part of the whole exercise had Al Tansim been in Australia they would have been entitled to 62,281,292 shares at 3.4c, but because they aren't in Australia those shares get handed to the underwriter and if he sells the 62,281,292 shares then he pays 62,281,292 x 3.4c to Al Tansim. So effectively - because Al Tansim is the sub-underwriter, and also because they have first dibs on the shortfall pool to take their shareholding to 19.9% (see section 7.6 of the Prospectus), this means that if Al Tansim buys (as sub-underwriter) all of the remaining shares in the shortfall pool (which seems to be the entire purpose of this rights issue), then after buying however many remaining shares are left in the shortfall pool, the underwriter then sends Al Tansim a cheque for $2,117,563.92 (62,281,292 shares at 3.4c) - so effectively they have received 62,281,292 shares free of charge - that is how it seems to me? How does everyone else read it? If so then with 51% of the shares held overseas, and Al Tansim fully sub-underwriting the entire offer then what that would seem to mean is that we are issuing $15,259,360 worth of shares - but because 51% of the funds raised will be sent to the overseas holders for the sale of their eligible shares - this rights issue will only really raise (in net terms) $7,477,086 (49% of the $15,259,360 it is supposed to raise). Is that how everyone else reads this?