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Further Issues
Companies may require additional equity capital for expansion, working capital, debt reduction, acquisitions, capacity creation or other corporate objectives.
Choosing the Appropriate Route
Four routes, each built around a different objective. Select a tab below to explore each one.
| Route | Who participates | Primary capital raised | What it means |
|---|---|---|---|
| Rights Issue | Existing shareholders | Yes | Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. |
| QIP | Institutional investors | Yes | Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. |
| OFS | Existing shareholders who sell | No — liquidity for existing holders | Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. |
| Preferential Allotment | A selected strategic investor | Yes | Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. |
Further Issue Routes
Strengthening Capital Through Existing Shareholders
Companies may require additional equity capital for expansion, working capital, debt reduction, acquisitions, capacity creation or other corporate objectives.
A rights issue provides a mechanism through which eligible existing shareholders can be offered an opportunity to subscribe to additional securities in proportion to their existing holdings, subject to the applicable regulatory framework and terms of the issue.
For promoters and companies, the route can provide access to capital while maintaining a connection with the existing shareholder base.
JDA helps companies evaluate whether a rights issue is appropriate, determine the transaction structure and coordinate the process through completion.
From Feasibility to Completion
- Transaction feasibility
- Capital requirement assessment
- Issue structuring
- Pricing analysis
- Regulatory coordination
- Documentation support
- Investor communication
- Issue management
Is a Rights Issue the Right Route?
Before initiating a rights issue, the company should evaluate whether the transaction is appropriate for its capital requirement, shareholder base and strategic objectives.
Our feasibility assessment considers factors such as:
- 01Amount of capital required
- 02Existing shareholder base
- 03Promoter participation
- 04Financial position
- 05Funding objectives
- 06Capital structure
- 07Proposed use of proceeds
- 08Market conditions
- 09Pricing considerations
- 10Regulatory requirements
- 11Alternative funding routes
The assessment helps management understand the advantages, limitations and execution considerations before committing to the transaction.
Defining the Requirement
The size and purpose of the issue should be linked to a clearly defined corporate objective.
We help management evaluate capital requirements arising from:
Business Expansion
Capacity addition, new facilities and geographic expansion.
Working Capital
Supporting increased business activity and operating requirements.
Debt Reduction
Strengthening the balance sheet and improving financial flexibility.
Capital Expenditure
Funding machinery, infrastructure, technology and other investments.
Acquisitions
Supporting strategic acquisitions or business opportunities.
General Corporate Requirements
Funding other permitted corporate purposes within the applicable framework.
A clear capital requirement provides the foundation for determining the size and structure of the issue.
Designing the Offering
The structure of a rights issue needs to align the company's funding requirement with the interests of eligible shareholders and the applicable regulatory framework.
Key considerations may include:
- Issue size
- Rights entitlement
- Record date
- Issue period
- Pricing
- Renunciation, where applicable
- Promoter participation
- Use of proceeds
- Subscription expectations
- Shareholding implications
- Post-issue capital structure
JDA works with the company and relevant transaction professionals to coordinate these considerations and develop the appropriate transaction structure.
Balancing Capital Requirements and Shareholder Participation
Pricing is a critical component of a rights issue.
The issue price needs to be evaluated in the context of the company's financial position, market price, capital requirement, shareholder participation and applicable regulatory requirements.
Our analysis may consider:
- Existing market price
- Historical trading performance
- Financial performance
- Valuation considerations
- Issue size
- Rights ratio
- Discount or premium considerations
- Investor participation
- Market conditions
The objective is to support a pricing approach that is commercially considered, appropriately supported and aligned with the transaction's objectives.
Navigating the Regulatory Framework
Rights issues involve detailed regulatory, exchange and procedural requirements.
JDA coordinates with the company and relevant intermediaries through the applicable regulatory and exchange processes.
This may include coordination relating to:
- Regulatory filings
- Stock exchange requirements
- Transaction approvals
- Issue documentation
- Timelines
- Regulatory observations
- Responses and clarifications
- Issue-related disclosures
- Listing and allotment processes
The objective is to maintain process discipline and ensure that the transaction progresses in accordance with the applicable framework.
Communicating With Existing Shareholders
A rights issue involves an existing shareholder audience with different levels of participation and understanding.
Clear communication is therefore critical.
We support companies in communicating:
- Why the company is raising capital
- Amount being raised
- Purpose of the issue
- Rights entitlement
- Issue price
- Key dates
- Use of proceeds
- Strategic rationale
- Potential impact on shareholding
- Process for participation
The objective is to help shareholders understand both the mechanics of the issue and the business rationale behind the capital raise.
Assess. Structure. Price. Communicate. Execute.
01 — Assess
Evaluate the capital requirement, shareholder base and suitability of the rights issue route.
02 — Structure
Determine the issue size, entitlement, timing and transaction framework.
03 — Price
Evaluate pricing in the context of valuation, market conditions and shareholder participation.
04 — Prepare
Coordinate regulatory processes, documentation, approvals and transaction requirements.
05 — Communicate
Help shareholders understand the purpose, terms and mechanics of the issue.
06 — Execute
Manage the issue process through closure, allotment and listing.
07 — Complete
Support post-issue requirements and transition into the company's next phase of growth.
Structured Capital-Market Execution
Business Understanding
We begin with understanding why the company requires capital and what the funds are intended to achieve.
Transaction Structuring
We help evaluate the key structural considerations surrounding the issue.
Pricing Perspective
We bring a market-oriented approach to evaluating issue pricing and shareholder participation.
Regulatory Discipline
We recognise the importance of documentation, approvals, disclosures and regulatory timelines.
Stakeholder Coordination
We coordinate across management, shareholders, advisors, intermediaries and relevant market institutions.
Execution Focus
Our focus extends beyond structuring the transaction to completing it effectively.
Considering a Rights Issue?
Plan Your Next IssueAccessing Institutional Capital
For a listed company, raising capital is not simply a question of funding availability.
The transaction must consider the company's capital requirement, market position, valuation, shareholder structure, investor appetite and strategic objectives.
A Qualified Institutions Placement provides an avenue for eligible listed companies to access institutional capital within the applicable regulatory framework.
JDA works with management teams to evaluate the rationale for a QIP, assess the capital requirement, develop the transaction strategy and coordinate the process through completion.
Our approach is designed around one objective:
Connect a company's capital requirement with the right institutional capital at the right time.
From Capital Requirement to Institutional Allocation
- Funding requirement assessment
- Transaction feasibility
- Issue structuring
- Valuation analysis
- Investor positioning
- Institutional investor engagement
- Regulatory coordination
- Documentation support
Is a QIP the Right Route?
Before initiating the transaction, management should evaluate whether a QIP is appropriate in the context of the company's objectives and market position.
Our assessment may consider:
- 01Capital requirement
- 02Existing capital structure
- 03Shareholding pattern
- 04Market capitalisation
- 05Trading profile
- 06Valuation
- 07Institutional investor interest
- 08Promoter objectives
- 09Dilution considerations
- 10Market conditions
- 11Regulatory requirements
- 12Alternative funding routes
The objective is to provide management with a clear framework for deciding whether and when to pursue the transaction.
Defining the Capital Requirement
A QIP should begin with a clearly defined funding objective.
We work with management to understand the company's current and projected capital requirements, including:
Growth & Expansion
Funding new facilities, capacity, products, geographies or business verticals.
Working Capital
Supporting increased operating requirements and business growth.
Capital Expenditure
Funding machinery, technology, infrastructure and other investments.
Debt Reduction
Strengthening the balance sheet and improving financial flexibility.
Acquisitions
Funding strategic acquisitions and consolidation opportunities.
General Corporate Requirements
Supporting other permitted corporate objectives within the applicable framework.
Understanding the requirement helps determine the appropriate size, timing and structure of the proposed transaction.
Designing the Institutional Capital Raise
The structure of a QIP needs to balance the company's funding requirements with market conditions, regulatory parameters and investor expectations.
Key considerations may include:
- Issue size
- Capital requirement
- Dilution
- Pricing framework
- Shareholding impact
- Timing
- Use of proceeds
- Investor universe
- Transaction timetable
- Post-issue capital structure
JDA works with the company and relevant transaction advisors to develop a structure aligned with the proposed objectives and applicable requirements.
Understanding the Market Value
Pricing is one of the most important considerations in an institutional capital raise.
Our valuation and market analysis may consider:
- Historical share-price performance
- Current market valuation
- Trading volumes
- Financial performance
- Earnings trajectory
- Comparable listed companies
- Industry conditions
- Growth expectations
- Investor sentiment
- Proposed issue size
- Applicable pricing requirements
The objective is to establish a well-supported framework for evaluating the transaction and its pricing dynamics.
Managing a Regulated Transaction
A QIP requires close attention to regulatory and exchange requirements.
JDA coordinates with the company and relevant professional advisors through the applicable transaction processes.
This may involve:
- Regulatory requirements
- Stock exchange coordination
- Transaction approvals
- Corporate approvals
- Issue-related filings
- Documentation
- Regulatory observations
- Responses and clarifications
- Timelines
- Allotment and listing requirements
The objective is to maintain process discipline throughout the transaction.
Connecting With the Institutional Market
A QIP is fundamentally an institutional transaction.
We facilitate engagement with relevant categories of qualified institutional investors, subject to applicable regulations and transaction parameters.
Potential investor categories may include:
- Mutual funds
- Insurance companies
- Alternative investment funds
- Foreign portfolio investors
- Pension and sovereign institutions
- Other eligible institutional investors
The objective is to facilitate informed engagement between the company and relevant institutional investors.
From Institutional Engagement to Completion
01 — Preparation
Assess capital requirement, transaction feasibility and market conditions.
02 — Structuring
Determine issue size, structure, timing and transaction strategy.
03 — Positioning
Develop the investment proposition and investor communication framework.
04 — Investor Engagement
Engage with relevant institutional investors and facilitate management interactions.
05 — Transaction Execution
Coordinate documentation, regulatory processes and issue-related activities.
06 — Allocation & Completion
Support the transaction through allocation, allotment and applicable listing processes.
Institutional Capital. Disciplined Execution.
Listed-Market Perspective
We understand that a QIP takes place within the context of an existing listed company, its shareholders and market valuation.
Institutional Orientation
Our approach is designed around the requirements and expectations of institutional investors.
Transaction Structuring
We help companies evaluate issue size, dilution, timing and capital objectives.
Valuation Perspective
We bring financial and market considerations together when evaluating transaction pricing.
Investor Engagement
We facilitate targeted engagement with relevant institutional investors.
Regulatory Discipline
We recognise the importance of documentation, disclosures, approvals and transaction timelines.
Execution Focus
We remain focused on moving the transaction from strategy and preparation through to completion.
Considering Institutional Capital?
Plan Your Next IssueCreating Liquidity Without Raising Primary Capital
Unlike a primary fundraising transaction, an OFS is primarily a secondary transaction.
The proceeds of the sale generally accrue to the selling shareholder rather than the company.
This makes the transaction particularly relevant where an eligible shareholder is considering:
- Partial monetisation
- Portfolio rebalancing
- Stake reduction
- Strategic exit
- Promoter holding reduction
- Institutional liquidity
- Ownership transition
JDA helps shareholders evaluate the transaction strategically and approach the market with a structured execution plan.
From Stake-Sale Strategy to Completion
- Transaction assessment
- Stake-sale planning
- Offer structuring
- Pricing considerations
- Regulatory coordination
- Documentation support
- Investor communication
- Institutional engagement
Is an OFS the Right Route?
The first step is to understand the shareholder's objective and evaluate whether an OFS is an appropriate mechanism for achieving it.
Our assessment may consider:
- 01Size of the proposed stake sale
- 02Existing shareholding
- 03Promoter or non-promoter status
- 04Desired level of liquidity
- 05Strategic objectives
- 06Market conditions
- 07Trading liquidity
- 08Share-price performance
- 09Investor appetite
- 10Regulatory requirements
- 11Alternative liquidity routes
The objective is to provide a clear framework for deciding whether an OFS is appropriate and how the transaction should be approached.
Turning Ownership Into an Exit Strategy
A stake sale should be planned around the shareholder's broader objectives rather than treated simply as a disposal of shares.
We help evaluate:
Partial Liquidity
Selling a portion of the holding while continuing to maintain an ownership position.
Strategic Reduction
Reducing a significant holding as part of a broader ownership or capital strategy.
Portfolio Rebalancing
Creating liquidity or adjusting exposure by institutional or other eligible shareholders.
Ownership Transition
Supporting a planned change in shareholder ownership over time.
Full or Substantial Exit
Evaluating an orderly route for significant or complete secondary liquidity, subject to applicable requirements.
The transaction strategy is developed around the shareholder's objectives, the company's market position and the prevailing regulatory framework.
Designing the Transaction
The structure of an OFS needs to balance the seller's liquidity objectives with market conditions and investor participation.
Key considerations may include:
- Number of shares offered
- Offer size
- Allocation structure
- Promoter and non-promoter participation
- Floor price considerations
- Timing
- Eligible investor categories
- Market liquidity
- Public shareholding considerations
- Regulatory requirements
JDA coordinates with the selling shareholder, company and relevant transaction professionals to develop the appropriate transaction framework.
Balancing Liquidity and Market Participation
Pricing can have a significant influence on the outcome of an OFS.
A price that does not sufficiently attract investor participation may affect subscription, while an unnecessarily aggressive discount may affect the seller's realisation.
Our analysis may consider:
- Current market price
- Historical trading performance
- Trading liquidity
- Market capitalisation
- Valuation metrics
- Comparable companies
- Sector sentiment
- Recent market activity
- Investor appetite
- Proposed offer size
The objective is to provide a market-informed framework for evaluating the transaction and pricing strategy.
Managing the Regulatory Framework
An OFS is subject to specific regulatory, exchange and procedural requirements.
JDA coordinates with the company, selling shareholder and relevant professional advisors in relation to applicable requirements.
This may involve:
- Regulatory filings
- Stock exchange coordination
- Transaction approvals
- Offer documentation
- Disclosures
- Timelines
- Clarifications and responses
- Investor-related processes
- Allocation and settlement requirements
The objective is to maintain transaction discipline and ensure that the process progresses in accordance with the applicable framework.
Communicating the Opportunity Clearly
An OFS creates an opportunity for investors to acquire shares in an already listed company.
Clear and disciplined communication helps investors understand the transaction within the context of the underlying company.
Relevant areas may include:
- Company overview
- Business fundamentals
- Market position
- Financial performance
- Growth outlook
- Shareholding structure
- Transaction rationale
- Offer details
- Key transaction parameters
The communication framework should remain consistent, factual and aligned with applicable disclosure requirements.
From Decision to Settlement
01 — Preparation
Assess the transaction, seller objectives and market conditions.
02 — Structuring
Determine offer size, structure, timing and applicable transaction parameters.
03 — Regulatory Process
Coordinate required approvals, filings and exchange processes.
04 — Investor Engagement
Communicate the opportunity and facilitate relevant investor participation.
05 — Offer Execution
Coordinate the transaction through the applicable market mechanism.
06 — Allocation & Settlement
Support allocation, settlement and related completion processes.
Secondary Transactions. Disciplined Execution.
Shareholder-Focused Advisory
We begin with understanding the seller's objective and broader ownership strategy.
Market Perspective
We consider liquidity, valuation, trading conditions and investor appetite when evaluating the transaction.
Transaction Structuring
We help coordinate the key parameters of the offer around the seller's objectives.
Investor Engagement
We facilitate appropriate engagement with relevant institutional and eligible investors.
Regulatory Discipline
We recognise the importance of regulatory requirements, documentation and exchange processes.
Execution Focus
We remain focused on completing the transaction in an orderly and coordinated manner.
Considering a Stake Sale?
Plan Your Next IssueCapital From the Right Investor
A capital raise is not defined only by the amount of money raised.
In a preferential issue, the identity of the investor and the purpose behind the investment can be equally important.
A company may consider a preferential issue to:
- Fund expansion
- Strengthen its balance sheet
- Bring in strategic investors
- Support a specific business initiative
- Fund acquisitions or investments
- Meet working-capital requirements
- Facilitate promoter participation
- Strengthen long-term capital resources
JDA helps management evaluate the transaction from both a capital requirement perspective and an investor-fit perspective.
The objective is to structure capital with a clear purpose.
From Capital Requirement to Transaction Completion
- Transaction feasibility
- Capital requirement analysis
- Investor identification
- Valuation support
- Transaction structuring
- Regulatory coordination
- Documentation support
- Investor communication
Is a Preferential Issue the Right Route?
Before proceeding, management should evaluate whether a preferential issue is appropriate for the company's objectives, capital requirement and investor strategy.
Our assessment considers factors such as:
- 01Capital requirement
- 02Proposed investor
- 03Existing shareholding
- 04Promoter objectives
- 05Strategic rationale
- 06Proposed use of funds
- 07Ownership implications
- 08Dilution
- 09Valuation
- 10Market conditions
- 11Regulatory requirements
- 12Alternative funding routes
The objective is to establish a clear understanding of the transaction before moving into formal execution.
Defining Why the Capital Is Needed
A preferential issue should be supported by a clear capital requirement and corporate rationale.
We work with management to assess potential requirements arising from:
Business Expansion
Funding new capacity, facilities, products or markets.
Working Capital
Supporting increased operating requirements and business growth.
Capital Expenditure
Funding machinery, infrastructure, technology or other investments.
Acquisitions
Supporting strategic acquisitions or business combinations.
Debt Reduction
Strengthening the balance sheet and improving financial flexibility.
Strategic Initiatives
Funding specific business or corporate initiatives.
The objective is to connect the amount of capital being raised with a clearly defined business purpose.
Designing the Right Capital Solution
Once the capital requirement and investor strategy are understood, the transaction can be structured around the company's objectives.
Key considerations may include:
- Issue size
- Number of securities
- Investor allocation
- Pricing
- Dilution
- Promoter shareholding
- Post-issue capital structure
- Use of proceeds
- Investor participation
- Regulatory requirements
- Corporate approvals
JDA coordinates with the company and relevant advisors to develop an appropriate transaction framework.
Establishing a Defensible Transaction Basis
Valuation is a critical component of a preferential issue.
The transaction needs to consider the company's business fundamentals, market valuation and applicable regulatory requirements.
Our analysis may consider:
- Historical financial performance
- Revenue growth
- Profitability
- Earnings trajectory
- Cash flows
- Business model
- Industry dynamics
- Listed peers
- Market price
- Trading performance
- Growth expectations
- Proposed transaction size
The objective is to provide management with a structured framework for evaluating the proposed transaction valuation and investor discussions.
Navigating a Regulated Transaction
Preferential issues involve detailed regulatory, corporate and exchange requirements.
JDA coordinates with the company and relevant professional advisors through the applicable processes, including:
- Regulatory requirements
- Stock exchange coordination
- Corporate approvals
- Shareholder approvals
- Transaction filings
- Pricing-related requirements
- Disclosure requirements
- Investor-related documentation
- Allotment processes
- Listing requirements
The objective is to maintain discipline across the transaction and ensure that relevant requirements are addressed at each stage.
Communicating the Strategic Rationale
Where an identified investor is entering the company, the investment rationale should be clearly understood by all relevant stakeholders.
Communication may address:
- Company's business
- Investment rationale
- Strategic objectives
- Capital requirement
- Use of proceeds
- Investor profile
- Transaction structure
- Valuation considerations
- Expected business impact
The objective is to create clarity around why the capital is being raised, why the investor has been identified and what the transaction is intended to achieve.
From Structure to Allotment
01 — Preparation
Assess the requirement, investor and transaction feasibility.
02 — Structuring
Determine issue size, pricing, allocation and transaction structure.
03 — Approvals
Coordinate corporate, regulatory and exchange requirements.
04 — Documentation
Prepare and coordinate applicable transaction documentation.
05 — Investor Process
Coordinate investor communication and transaction-related requirements.
06 — Allotment
Support the company through allotment and related completion processes.
07 — Listing & Closure
Coordinate applicable listing, filings and post-issue requirements.
Strategic Capital. Disciplined Execution.
Business Understanding
We begin with the company's underlying business and the reason capital is required.
Investor Perspective
We consider both financial capacity and strategic relevance when evaluating potential investors.
Valuation Focus
We bring business, financial and market considerations into the valuation discussion.
Transaction Structuring
We help align issue structure with capital requirements and ownership objectives.
Regulatory Discipline
We recognise the importance of approvals, documentation, disclosures and regulatory timelines.
Execution Orientation
We remain focused on taking the transaction from initial assessment through allotment and completion.
Looking for Strategic Capital?
Plan Your Next Issue01Which further-issue route suits our company?
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02What approvals are needed?
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03How long does a rights issue take?
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04How is the issue price decided?
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05What disclosures are required?
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06How do we begin an engagement?
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Planning a Rights Issue, QIP, OFS or Preferential Issue?
Tell us about the proposed issue and we will outline the structure, process and timeline.
- 01
Share your requirement
Tell us about the business and what you want to achieve.
- 02
We review and respond
A senior member of the team reviews your enquiry and gets back to you.
- 03
Plan the way forward
We outline the options and the right path for the transaction.
Advisory engagements are subject to mandate, eligibility and applicable regulatory requirements.
Tell us about your requirement
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