Small investors give Commonwealth Bank bloody nose over $3bn share issue

Retail shareholders only took up half of a rights entitlement offer in Australia's biggest bank amid market volatility and uncertainty about the economy

Small investors have delivered an embarrassing snub to Commonwealth Bank after only half the shares from an expected $3bn rights entitlement offer were taken up by shareholders despite a discounted rate.

Stock market volatility and the uncertain outlook for Australia's banks have been blamed for the rejection which left the bank with a $1.5bn hole in its capital raising plan.

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