I'm abit confused about the purpose of underwriting a DRP,
as I understand it in a DRP, if 30% of the shares are participating in it the company gets to keep 30% of the dividend in cash and issue shares in the company to the value of the money kept, the rest is kept by the other 70% of shareholders.
so whats the point of underwriting the DRP??
many companies are doing it at the moment.
anyone enlighten me on this??