The ASX is proposing to increase the capital raising limit for mid to small caps from 15% to 25%. "Mid to small caps" means listed entities with a market capitalisation of A$300 million or less.
By lifting the limit I think the rough mid to small caps will now be able to dilute the hell out of small shareholders.
We have seen how directors have squandered millions of dollars raised under such capital raisings.
Imagine you shareholding been diluted 50% in a 13 month period.
Further details can be found at the following URL http://www.asxgroup.com.au/media/strengthening_australias_equity_capital_markets_2Apr12.PDF
We all know why the ASX wants the rule change. More capital, more fees.
