Assume that the shares are $10 each. You can then purchase shares for the 1/5 price mentioned in the question, that is, $2 each. Of 50 million shares, 25 million will participate. You will raise an extra $50 million.

Thus, total corporate assets will be $550 million. There are now 75 million shares in total. Therefore, each share will be worth $7.33. Participating investors will own 2 shares worth $14.66, for which they will have paid $12. This represents a 22% gain. Nonparticipating investors will own 1 share worth $7.33, for which they will have paid $10. This represents a 26.7% loss.