Is it all about size?
Unlike larger companies like Cochlear, Ramsay Healthcare, and National Australia Bank, a retail offer to small shareholders by wholesale mobile phone and accessories distributor Cellnet has bombed badly.
Cellnet raised $680,000 or just over a quarter of the $2.34 million it had been looking for from the issue.
About 150 valid applications were received for 22.64 million shares at 3c each, representing a take-up rate of about 16%.
In contrast, the NAB, Ramsay, and Cochlear all boosted the size of the retail offers to cope with higher demand.
The shortfall for Cellnet leaves Melbourne-based private equity firm and underwriter Thundering Herd with 55.4 million shares at a cost of $1.7 million and will make them the second-largest shareholder after chairman Michael Wendt.
An institutional offer conducted in early May was more successful, raising $2.73 million by issuing 91 million new shares at 3c per share to Wentronic, a company related to Mr. Wendt.
This takes his shareholding up to 81.18% of shares on issue.
As with the overwhelming majority of the recent run of capital raisings, the money will help Cellnet get through the COVID-19 pandemic.
Cellnet shares have dropped from 11c a year ago to a low of 4.1 cents two weeks ago. They last traded at 4c, down 20%. That was their low for the session.