tol1 Posted April 1, 2018 Share Posted April 1, 2018 Hey, A company is likely to raise equity in a large amount (30% of market cap) and has 1 large shareholder (20%) on its register. A few questions please: - How does a company decide whether to do a rights issue or a capital increase? Can the large shareholder block either? - Does the discount of either to the current share price differ? - How much is a usual discount in both processes? - A 3-for-10 rights issue implies the share count increases by 30%. Does that mean that the EPS automatically decreases by 30% at the same time? Thank you Link to comment Share on other sites More sharing options...
tol1 Posted April 3, 2018 Author Share Posted April 3, 2018 Appreciate if anyone has some practical knowledge in this equity capital markets area. Thanks Link to comment Share on other sites More sharing options...
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