Originally Posted by
Mrbuyit
^^ this is interesting, i had assumed that there was little to no dilution effect, (rough numbers here ) say there was 400M in the pot (320M shares) ~1.25 per share.
someone purchased and exercised their rights of say 10M shares at 1.27 the pot is now 412.7M and the number of shares on issue = 330M, so kind of making it neutral, (depending on how close the rights issue is to current share price)
Am I way off the mark on how this rights issue plays out Alokdhir? i'm keen to understand a bit more about the dilution, and what my best option to counteract it is.
Aah... actually i think I get it... does the dilution occur when the rights issue is significantly below the current share price, because no-one in their right mind is exercising rights at above current trading price..