During an additional share issuance, the total number of shares increases. If an existing shareholder does not purchase new shares proportionally to their stake, their share in capital and voting rights decreases, even though the number of shares they own remains unchanged.
Share dilution does not always mean a loss of value. If funds are raised at fair value and invested in development, the company's value grows, and a smaller stake may be worth no less than before. A loss occurs when shares are placed at a discounted price: in this case, new shareholders receive part of the already-created value.
The impact on per-share metrics is assessed separately. Earnings per share and dividends per share decline when their quantity increases, unless earnings grow proportionally.
Protection mechanisms include the preemptive right of existing shareholders to purchase new shares proportionally to their current stake, as well as special approval procedures for private placements. Therefore, an announcement of additional issuance warrants attention to the placement price and the circle of purchasers.