It is the company's second capital raising in as many years. It raised $164 million last year in an offer also priced at $2.50.

Investors were offered one new share for every 17 they already owned for $2.50 a share, a massive 43 per cent discount on the company's share price at the open of the offer. Due to the extreme discount, investors believed the offer would be fully subscribed.

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Mr Harvey, who currently holds a 31.34 per cent stake in the retailer, will marginally increase his shareholding if the offer is undersubscribed.

Activist shareholder Stephen Mayne, who will self-nominate for a board seat at Harvey Norman's annual general meeting in late November, criticised the structure of the capital raising.

Mr Mayne has been a frequent detractor of Mr Harvey and his company's operations, regularly opposing executives' remuneration, director appointments and board structure.

"One for 17 shares, it's such a small amount of money many people will just say they can't be bothered," he said.

Harvey Norman's AGM will be held on November 27.