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Offer price

The price at which new shares are sold to subscribers in an additional issue.

How to read the number

It fixes how much money reaches the company per new share, and therefore whether the issue leaves existing holders better or worse off.

When the metric lies

Placing below the market transfers value from those who do not participate to those who do. That transfer is the damage of dilution — not the rising share count by itself.

Also known as: subscription price

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