One day, all existing shareholders of a company should be able...

One day, all existing shareholders of a company should be able to participate in a placement on a pro rata basis. Brokers will resist because it is free money for them and their clients but we should all be lobbying because existing shareholders are the losers in a placement due to dilution.

how would it work?

say DRO has 600m shares and wants to issue 120m shares @ 80c (I have rounded numbers for convenience). It announces this before market open. Existing shareholders should then be given the chance to participate on a pro rata basis. Ie in this example, existing holders should be given a chance to buy 1 share for every 5 held. The advantages of a placement given by brokers is speed. I don't care. Give me 24hrs. All the details would then be uploaded onto the company's registry where I would be given the option to participate, and if i do the details get forwarded to my broker for settlement. If I don't respond by 10am the next day then yes, let the brokers sell it to their clients. As I said, 24hrs for existing holders is all im asking for. The other 24hrs can goto brokers.

the other reason brokers give for not letting us participate in placements is that they are for sophisticated investors only. This is a str@wman argument. I own shares in the company already! If I'm not sophisticated to buy more shares then I am not sophisticated to own the shares in the first place!!!

the battle for this disgraceful placement has been lost already, but we must lobby for ways not to be screwed in the future in all companies we own. I have come up with what I think is a feasible way. The brokers will of course say it is not. The technology exists for us to participate unlike 20-30years ago when registries wernt online. Other suggestions to make this come to fruition or iron out any chinks would be appreciated.