A very frank AGM Last week, retailer Harvey Norman (ASX: HVN) announced at its AGM a 1 for 22 renounceable rights issue to raise $121 million at $2.50 per...

A very frank AGM Last week, retailer Harvey Norman (ASX: HVN) announced at its AGM a 1 for 22 renounceable rights issue to raise $121 million at $2.50 per share versus the last sale price of $3.69 as of Friday's close. The proceeds of this equity raising will be used to facilitate the payment of a 14 cents fully franked special dividend to shareholders. This is the first time that we have seen a company do this since Flight Centre announced a rights issue in 2001 to help pay a special dividend of 60 cents per share. We are encouraged by Harvey Norman's Board's endeavour to release the value of its $659 million franking balance of which this represents a very small portion.