It's so sad that the share price is so low for this capital raising.
I have always thought that one of the positives about CCU is the low shares on offer but after this is all over and done with they will most likely have anything up to 20 million shares placed on to the market.
If they wish to raise 5 million at the current price then they would dilute the share registry with another 25.6 million shares.
That's some huge dilution there.
They will be raising capital at an even lower price though which means even more dilution for CURRENT shareholders.
I'll probably still become a shareholder again in coming months so at the end of the day this dilution won't effect me too much but I do feel for the current shareholders.
CCU Price at posting:
18.9¢ Sentiment: Hold Disclosure: Not Held
