Companies in the current crisis are rushing to strengthen their balance sheets. This article reviews what is happening and mentions the PrimaryBid approach. It quotes ShareSoc director Cliff Weight:
However, excluding retail investors from participating in fundraisings is a “snub”, said Cliff Weight, director of policy and campaigns at shareholder rights group ShareSoc, arguing that companies should not be taking a selective approach to when they require support from retail shareholders.
“This is a way of the big institutions creaming off a profit at the expense of retail investors,” said Mr Weight, highlighting the dilutive impact on retail holdings of placings that have typically been completed at a discount to the issuers’ current market value.