The issue is being done via prospectus supplement and no holding period is mentioned. We expect the stock to decline on the news today, as investors sell in the market and then buy the new shares. Thus, the opportunity for arbitrage may be reduced, and any large fund would have difficulty selling a large block to arbitrage this. Also, the issue does not close until Nov 29 so there is some time risk here as well. In a large offering, brokers and the company agree to a price, and a discount is usually offered so as to ensure an easy sale and to allow for possible market fluctuations. It can be slightly detrimental to existing shareholders. A rights issue (where all shareholders get rights to maintain their pro rata interest) is more fair, but takes a lot longer to do so the company incurs significant market risk while the rights issue progresses. For individual investors, they simply need to contact their broker and express interest in buying the deal. However not all brokers are in the deal, and if it is popular there is no guarantee investors will get their requested allotment.
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