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Yes. but if old investors donot buy more shares with same ratio in new offering, but old shareholders again buy more shares with the old ratio in new offering then there is no change in the ownership of shareholder.
For example if a company has $ 100 Equity and one shareholder holds $10 in company capital then he has 10 % share.Now if company issue $100 more equity to new share holders then total equity capital raise to $200 but that share holder doesnot purchase more share in new issue and his investment remains at $10 so now his share in company's share capital becomes:
10/200 = 5%
So it shows if old investor do not buy from new offering equalls to old ratio of 10% in new offering then his ownership share has dilluted but if he buys 10% more from new offering then his share will be
10 + 10 = 20/200 = 10%
Hope it will answer your question.
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