Justifying share issuance schemes

TheStar Sat, Sep 04, 2021 09:00am - 3 years View Original


Companies also use the issuance of new shares to raise capital via a rights issue exercise to enable the company to raise funding needs for potential acquisitions or working capital purposes or even to pare down borrowings.

ONE of the reasons for a company to be listed on the stock exchange is to tap the capital market for future expansion of its business.

This can be in the form of the issuance of new shares as a consideration in a transaction.

In essence, the issuance of new shares reflects the use of shares as a currency of exchange when acquiring a stake in a company via a merger, or in an acquisition deal of a company or an asset.

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Comments

Izzat Bin Ismail
Like · Reply
why you didn't mention the company name?
Halim Isa
Fintec global
Like · 3 years · translate

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