TL;DR
Capital raises involve various stakeholders including management, lead managers, brokers, registries, investors, the Chairman's List, legal teams, and IR agencies. Each plays a distinct role in ensuring the success of either placements or shareholder offers.
Table of contents
Placements
Management | Oversees the entire capital raise process, ensuring alignment with company goals. |
Lead manager | Typically a broker or investment bank manages the deal including settlement, investors, underwriting, and structuring, for a fee. |
Brokers | Coordinate with the lead manager, offering their network of investors in exchange for a fee. |
Registries | Manage administrative aspects of newly issued shares, such as updating share registers and facilitating settlement. |
Investors | Sophisticated investors (s708s), including HNWs and institutionals, participate through their brokers. |
Chairman's list | A pre-lead manager funding source, often comprising HNW individuals, institutional investors, and management members. |
Legal (CoSec) | Responsible for preparing and issuing the cleansing notice, a regulatory document required by the ASX. |
Shareholder offers.
Management | Plays a similar oversight role as in placements. |
Lead manager | May assist in underwriting the shareholder offer, reducing the risk of capital raise shortfall, for a fee. |
Registries | Have a more active role in communicating with all eligible shareholders, processing applications, and managing share issuance. |
Legal (CoSec) | Prepares and issues regulatory filings like the prospectus and offer document, ensuring compliance with laws and listing rules. |
Shareholders | All types (retail, HNW, institutional) who decide whether to subscribe for additional shares. |
IR/agency | Engaged in running campaigns for maximising participation and raising investor awareness of the raise. |
Understanding the roles of various stakeholders in capital raising is essential for a smooth and successful process. Whether it's a placement or a shareholder offer, each stakeholder contributes significantly, from legal compliance to investor engagement and administrative management.