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Capital Raising through Share Placement

Discussion in 'Shares' started by jrc77, 3rd Jun, 2009.

  1. jrc77

    jrc77 Well-Known Member

    Joined:
    26th May, 2008
    Posts:
    147
    Last edited by a moderator: 3rd Jun, 2009
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi JRC,

    All shareholders have access to this information. Whether or not they take up the share offers is a personal opinion. As a WBC shareholder, I took up their share offer in January at $15.26, at $19.17 for a $3.91 per share gain I'm happy :)

    It's certainly a time when it is cheaper (and easier) for businesses to raise funds via equity rather than borrowing with tighter lending at the moment (even the banks did it!)

    In good times when its easy to borrow funds there are usually less share raisings compared to now it is easier to raise funds via equity.

    Most fund managers hold numerous shares and can make a choice of whether they believe it is a good purchase (ie, if the equity raising price per share is lower than the market price or if in general they think it's a good share to buy).

    Cheers,

    Dan

    PS This is general information. Speak to your FPA registered Financial Planner or ASX registered stockbroker before making an investment decision.
     
  3. clk0

    clk0 New Member

    Joined:
    21st Jul, 2007
    Posts:
    4
    Location:
    Sydney
    I was offered $10,000 worth of CBA shares at $26 per share and took up the offer in March this year and have a $3-4K gain:p. Not bad for a few month's work.
     
  4. sharejunky

    sharejunky Well-Known Member

    Joined:
    19th Oct, 2007
    Posts:
    56
    Location:
    Gold Coast
    Is anyone here doing something similar to Stephen Mayne? Sounds intriguing, but I can't find much on the forums.