Osakeantein

Osakeantein is a term used in corporate finance to describe the process of raising capital by issuing new shares of a company. In Finnish practice, osakeante can take several forms, including a rights issue (oikeusanti) offered to existing shareholders, a public offering, or a private/direct placement to selected investors. The most common form is the rights issue, which grants current shareholders pre-emptive rights to subscribe for additional shares, usually at a set price that may be at a discount to the market price. If all rights are not exercised, they can be traded or the remaining shares may be offered to others.

The primary purposes of an osakeantein are to strengthen the balance sheet, fund growth or acquisitions, reduce debt, or improve liquidity and capital structure. The typical process begins with a board proposal to increase share capital, followed by approval at a general meeting. Terms, price, and subscription period are then announced. In some cases the offering is underwritten, meaning underwriters guarantee the raised capital by subscribing themselves or finding subscribers.

Effects of an osakeantein include potential dilution for existing shareholders who do not participate, possible adjustments to the share price at the time of announcement, and the continuation of listing and trading of the new shares after allocation. Regulatory oversight applies, with corporate law and securities regulations governing notice, the rights trading window, and the subscription procedures. Overall, osakeantein describes the method by which a company chiefly raises equity capital through issuing new shares, distinguishing it from debt financing or asset sales.