Why might be a firm consider raising equity via a rights offering rather than via a general cash offer?

A firm may consider raising equity through a rights offering because it allows existing shareholders to maintain their proportional ownership and avoid dilution of their shares. This can foster goodwill and loyalty among current investors, as they are given the first opportunity to purchase additional shares at a favorable price. Additionally, rights offerings can be less expensive and quicker to execute compared to general cash offers, which often involve more regulatory scrutiny and marketing efforts to attract new investors.