watchdog sniffing at capital raisings, page-2

ASIC would ''seek law reform if there appears to be widespread unfair dilutions'' in capital raisings, she said.

Placements involve shares being issued to selected institutional investors at the discretion of the board. While they are quick to complete, they dilute the holdings of retail investors and other shareholders not invited to participate.

Renounceable rights issues are open to all existing shareholders, who are offered the chance to buy a parcel of new shares based on the size of their holdings. They are also able to sell their ''rights'' if they don't wish to take part.



Read more: http://www.theage.com.au/business/watchdog-sniffing-at-capital-raisings-20120403-1waqj.html#ixzz1r3GYmHA8