It always looked like an investment no-brainer: The chance to buy $5000 of Rakon shares - which closed yesterday at $4.90 - for just $4.05 each. That's a paper profit of $1046.
But despite being easy money, 10 per cent of eligible investors chose not to take advantageof Rakon's generous offer to retail investors, the company revealed yesterday.
The offer - made to give small investors the same opportunity that was presented to institutional shareholders in an earlier share issue - was still a resounding success raising more than $22 million.
Of those who took up the offer most took up their full entitlement.
Rakon, which makes high-performance crystals and oscillators for global positioning systems, placed 14.6 million shares with local and offshore institutional investors at $4.05 in February.
This month's offer to retail investors has seen 5,456,006 new shares issued.
The proceeds will be used to fund continued expansion of Rakon's global business after the acquisition of the Frequency Control Products division of C-Mac MicroTechnology.
Rakon floated last May with an issue price of $1.60. Shares issued under the share purchase plan are expected to start trading tomorrow.
