Replies to post #111580 on Amarin Corp Plc (AMRN)

[sts66]

RO's are routinely done as a means of raising money by closed end funds in the US.

I've owned many CEFs in my time, and in my experience tender offers (share buybacks) are way more common that RO's - RO's are only good for existing shareholders if the CEF is trading at a significant premium to NAV - for one at +20%, they're getting $1.20 for $1.00 worth of assets, an excellent deal.

In the US, we're more likely to use secondary stock offerings, often spot secondaries....But they are hardly a courtesy to long standing shareholders.

Nobody like dilution, but it's sure better than BK, which is where AMRN would be if they hadn't been able to raise money time after time using secondaries.