DID YOU KNOW?

In 2008-09, during the GFC, Australian companies raised around $100 billion from shareholders. But the benefits were distributed far from evenly. A report in 2010 by ISS Governance found around half the money raised was through placements that could not be accessed by all shareholders.

BEST-CASE SCENARIO

A capital raising can be a win-win if it positions a company well for future growth and allows shareholders to buy more shares at a discount.

WORST-CASE SCENARIO

Some companies will inevitably struggle in the aftermath of Covid-19. Shareholders don’t want to throw good money after bad.

THE WILD CARD

V-shaped, U-shaped, W-shaped or some other form of recovery?