todays the day, page-50

Well, maybe, but I can't see any other logic that the most fairest way is allocate to try and ensure even distribution and maintain shareholdings.
("Fairness" by way of allocating 2,120 shares to someone who has say 100 shares would most definately be cause for complaint unless no one else wanted them)
BTW in actual fact my holdings have been diluted at the expense of some smaller holders but I understand the rules, so no complaints from me.
This issue has escalated since the increase in SPP rules to allow max applications of $30,000 with the instance of some shareholders trying to game the system with applications way out of whack with their existing holdings. Companies are awake to it and if necessary are using this type of pro rata scale back.
(For example, Lend Lease is currently doing something similar with their scale back with actual allocation levels unknown at present.)