What is Shareholders/Stock Dilution and Book value Dilution?

Here are some definitions I found in Google search:

"Stock dilution, also known as equity dilution, is the decrease in existing shareholders' ownership percentage of a company as a result of the company issuing new equity. New equity increases the total shares outstanding which has a dilutive effect on the ownership percentage of existing shareholders. Wikipedia

Diluted book value per common share is calculated based on total shareholders' equity plus the assumed proceeds from the exercise of outstanding options and warrants, divided by the sum of common shares, unvested restricted shares, options and warrants outstanding (assuming their exercise).
Source: https://www.sec.gov/Archives/edgar/data/1348259/000095012309008560/y77146exv99w1.htm

Dilution: a reduction in earnings per share or an increase in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions.

Antidilution: an increase in earnings per share or a reduction in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions.
Source: https://www.iasplus.com/en/standards/ias/ias33#link1 "

Holders of Ages-PA as at 11/08/2021 had converted roughly 796.5 Million mother shares bringing in roughly RM103.5 Million into Ageson issued share capital/cash flow account. This represent roughly 54.7% of Ageson total issued share capital of RM189,195,696.

This 796.5 Million new shares roughly constitute 61.3% of 1,298,636,173 Ageson total Number of Outstanding SHares (NOSH).

Why convert at 13 sen when mother shares traded around 10 sen? (RM189,195,696÷1,298,636,173 worth roughly 14.5 sen/share) If collect at trading market, will it be 10 sen for this 61.3%?? In a nutshell, if the conversion price is higher than the current share price and lower than the 14.5sen/share price; will it be beneficial for the company/shareholders?? I do not have the answers to some of this questions posted at the i3 forum.

A good read at (copywrighted?):
 https://www.dummies.com/business/accounting/dilution-of-share-value/

 https://www.investopedia.com/articles/trading/10/warrants.asp

On the topic of 'rubbish' or 'con-stock'; I would like to take below article as a yardstick.

https://klse.i3investor.com/m/blog/savemalaysia/2021-08-10-story-h1569679847-Beware_of_rights_issue_galore_MSWG_reminds_newbie_investors.jsp

How many points did Ageson meets the critera given?
1) Ageson ICPS was issued before "Enhanced Rights Issue Mandate which was introduced in November last year."
2) Ageson did not has had huge share base and with decent earnings. (See fundamental listing below)
3) Ageson did not issued lots of shares under an employee share option scheme (ESOS) or under a private placement, thus diluting minority shareholdings.
4) Ageson did undertook huge rights issue exercise to raise fund from shareholders (the whole subcribed ICPS proceed) to purchase land.
5) Ageson has had significant financial instruments that would has a shareholding-dilution effect in the future, such as warrants, irredeemable convertible unsecured loan stock (ICULS) or irredeemable convertible preference shares (ICPS). Maybe can consider 1st con? Yes on shareholding-dilution, hence for retailers maybe only a very small fraction...
6) Ageson did frequently announced numerous memorandums of understanding (MOUs) or collaborative agreements. Most of these either fizzle-off or are terminated or take an unreasonably long time for completion. Consider 2nd con? Sand venture delayed due to MCO...
7) Ageson did frequently churned out announcements of business ventures, joint ventures (JVs) to create interest and excitement. Good companies will not do this – they produce good results without hyping-up interest and excitement. Ageson did produce good results.
8) Ageson did shown profit quarter after quarter, for the last 22 quarters.
9) Ageson did not used large portions of company’s funds to acquire non-core assets, invest in dubious JVs and investments.
10) Ageson did not used company fund to invest/speculate in listed stocks.

I think 2 out of 10 will NOT make it a 'rubbish' or 'con-stock'. Please do own due diligience.

AGESON performance as at 19/08/2021 (Rolling 4Q)
Profit/ (loss) : RM 41.284M
Market Cap :  RM 123M
EPS : 3.16sen, NTA : 0.25
Dividend PS : RM0.00
Dividend Yield : RM0.00
Dividend Payout Rate : 0.000
Ex Div Date : -
ROE : 12.64

As at: 19/08/2021
P/E : 3.01

Profit and NTA for the 5 period Ending:
1) 31 Mar 2021 : RM  6.231M, 0.25
2) 31 Dec 2020 : RM12.382M, 0.26
3) 30 Sep 2020 : RM   5.074M, 0.26
4) 30 Jun 2020 : RM17.297M, 0.44
5) 31 Mar 2020 : RM10.34 M, 0.61


Happy Trading

Disclaimer: The above opinion does not represent a buy, hold or sell recommendation; just a personal opinion and for sharing purposes only. Any offences and errors are unintentional; my apology in advance.