On the 18 May 2011, the Institutional Investor Committee issued best practice guidance for issuers on raising equity capital. This is a result of the Rights Issues Fees Inquiry, which showed that fees paid for rights issues are not neccessarily a good use of shareholders’ mone. The guidance attempts to let issuers and their boards know what insitutional investors consider best practice to ensure that the outcomes of the fundraising are cost effective.
The guidance starts at basics about directors familairising themselves with the equity raising process and engagement with shareholders and provides background on selecting advisers, structuring issues, and fees proposals.
