Zusammenfassung der Ressource
Equity issuance
- markets
- PRIMARY
- securities sold for first time
- means of RAISING new long-term CAPITAL
- SECONDARY
- existing securities traded
- does NOT raise new capital
- methods
- offer
- for subscription
- company issues shares directly to general public
- for sale
- LEAD MANAGER buys new shares before re-selling
- pricing offers (3)
- fixed price
- STAGS
- tender offer
- COMMON STRIKE PRICE
- bids
- bookbuilding
- demand curve
- placing
- SELECTIVE MARKETING
- intermediaries offer
- placing through several lead managers (brokers)
- vendor placings
- buyer pays for acquisition by issuing shares in itself
- buyer issues shares in itself to vendors
- vendors sell shares to receive cash
- stagging
- stag buys new shares and sells in secondary market for profit
- rights issue
- open for 21 days
- theoretical ex-rights price
- price of shares AFTER rights issue
- shares usually offered at discount - dilutes share price
- calculation
- theoretical nil-paid price
- theoretical ex-rights price less subscription paid
- splitting rights
- number of rights to be sold = rights available x sub price / theoretical ex-rights price
- choices
- take up rights
- sell rights
- split
- lapse
- bonus issue
- capitalisation / scrip issue
- new shares issued FREE OF CHARGE
- NO CHANGE in net assets or shareholder's funds
- reduces share price
- more attractive to investors
- theoretical ex-bonus price
- share splits and consolidations
- re-state financial ratios: eg NAV per share and EPS