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Are retail investors losing out amid the fundraising rush?

UK companies have cited cost and speed of transactions as reasons for allowing only institutions to participate
Are retail investors losing out amid the fundraising rush?

The relaxation in rules around raising new capital has given UK companies another weapon in their arsenal as they fight to strengthen their balance sheets - one that a growing number are taking advantage of.

Since the start of the month, companies including Restaurant Group (RTN), Asos (ASC) and WH Smith (SMWH) have raised funds by placing new shares with institutional investors equivalent to more than a tenth of their outstanding share capital.

That followed the release of updated guidelines from industry body the Pre-Emption Group, which said investors should temporarily consider supporting equity issuances by companies of up to 20 per cent of their existing share capital, above the 10 per cent limit set out in the group's statement of principles. 

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