
TY  - JOUR
A1  - Philips, J.D. 
A1  - Mathewson, V.E. 
T1  - NEW EQUITY RAISING METHODS FOR LISTED COMPANIES: JUMBOS AND RAPIDS&#x2014;OPTIMISED RIGHTS OFFERS AND PLACEMENTS
JF  - The APPEA Journal
JO  - The APPEA Journal
Y1  - 2006
VL  - 46
IS  - 1
SP  - 475
EP  - 480
KW  - 
UR  - https://doi.org/10.1071/AJ05028 
N2  - Traditional methods of equity capital raising by listed companies may not always be the best way to meet the needs of both the companies and shareholders1. The timetable for a rights issue (being a pro rata offer to all shareholders to subscribe for shares) may be too long to fund an acquisition or project. A placement (being an offer to institutional investors for a certain number of shares), while giving a company certainty and a shorter timeframe, excludes the company&apos;s shareholders from participation in the capital raising.Innovative new capital raising structures have been developed. Two of these are known as the jumbo and the RAPIDs&#x2122; structures.Broadly, they both combine aspects of a rights offer and a placement. The rights offer is split into two stages; the first stage involves offering institutional investors on the company&apos;s share register their component of the rights offer, which can be done in a short timeframe. This institutional component of the rights offer is combined with a placement to other institutional investors through a bookbuild. The retail component of the rights offer is then conducted on the Australian Stock Exchange Limited&apos;s (ASX) normal (longer) timetable. The offer structures enable funds raised from the institutional rights offer and placement to be received quickly, while still enabling retail shareholders to participate in the offer and avoid dilution. 
ER  -

