Placing

A placing can raise funds relatively quickly with lower marketing costs, but access, pricing, disclosure and shareholder pre-emption requirements depend on the jurisdiction, market and transaction. New shares provide company finance, whereas a placing of existing shares provides proceeds to their sellers. The issue can dilute current holders and alter ownership concentration. Compare it with a rights issue, public offer and borrowing in light of funding amount, timing, investor base and control. The word 'private' does not mean all regulatory requirements disappear.