Ann: Successful Completion of AHG's $115m Pla, page-16

re: Ann: Successful Completion of AHG's $... ASX Listing Rule 7.1 says a company can issue up to 15 per cent of their issued capital without shareholder approval.

The AHG announcement on March 26 said "A total of
approximately 33.0 million new ordinary shares, representing approximately 12.6% of AHG's existing issued share capital..."

The remaining $10M SPP would make up the remaining 2.4% (15% - 12.6%) {Just a rough guess considering my screen says the market cap is $1,198M, and I can't be bothered working it out to the cent}

Why do companies favour institutions over retail? It's cheaper and quicker to raise through placements. Institutions tend to me more stable investors, while retailers are more likely to go in and out of a stock, leading to price volatility... and of course the company likes to do their friends a favour.

That being said, the $10M is just enough scraps to shut the retail investor up enough that they don't complain too much to management. Personally I think that any raising that goes to institutions should also be offered to retail, but what proportion is debatable. Some argue that institutions often hold a bigger proportion of shares in the company so should get a greater cut of the raising.

I'd like to see a 50 / 50 split between retail and institutions in capital raisings, but that is wishful thinking that that would ever be made an ASX rule.