A directed share issue is a new share issue in which the new shares are offered to one or more selected investors instead of to all existing shareholders. It is often used to raise capital quickly or bring in a strategic owner.
Because existing owners cannot subscribe, a directed issue usually means dilution for them. The opposite is a rights issue. The issue increases the share capital and is recorded in the share ledger.
A rights issue is a new share issue in which existing owners have priority to subscribe for new shares.
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A new share issue is when a limited company issues new shares for payment to increase its capital.
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Dilution means existing owners' stake in the company decreases when new shares are issued.
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Share capital is the capital the shareholders contribute to a company in exchange for shares.
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