Repair issue
 

When the board has approved a private placement, they in some cases want existing shareholders not to feel unfairly treated. They can then carry out a repair issue to existing shareholders after the private placement has been completed.

 

Existing shareholders will then have the opportunity to subscribe for x number of shares based on how large a position of shares they had before the private placement was carried out. The subscription price for the existing shareholders will then be equal to the private issue price. There will therefore be no additional benefits for the targeted players in relation to the loyal existing shareholders. The company that carries out the repair issue also receives extra funds, thus extra shares are "printed" for this issue as well.

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