Neptune Marine Services Limited (NMS.AX) announced on Wednesday that its share purchase plan (SPP) had closed oversubscribed. Rather than take all the money from retail share holders management decided to slap them in the face and only allocate 50% of the shares applied for. NMS received applications for $26.49M or 52.99M shares, from 27% of their shareholders.

So the final score of this fund raising is corporate mates of Christians’ and co $40M, loyal and johnny-come- lately retail shareholders $13.25M. As a johhny-come-lately I’m not going to complain, but I’d be annoyed if I was a long term shareholder.

In fairness using the 2008 Annual Report as a guide small shareholders with under 100,000 shares owned 29.2% of shares and retail investors received 24.9% of the share in the dual capital raisings. No doubt some retail holders own more than 100,000 shares so while the split wasn’t quite fair it also wasn’t outrageously skewed.  If you’d prefer more outrage then the 20 largest holders at July 2008 held139M shares or 47% of issued capital. As the institutional capital raising was probably amongst those holders you could say that 43% (I deducted the inside owners) of shareholders got 75.1% of the new capital.

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1. Neptune Marine Services Initial Analysis
2. Neptune Marine Services’ NEPSYS Dives to New Depths
3. Neptune Marine
4. Macquarie Share Purchase Plan