What is a capital raising on the ASX?
A capital raising is when a company issues new shares or other securities to bring in money. It can fund growth, an acquisition, debt repayment or day-to-day operations.
Key points
- Existing shareholders may be diluted if the number of shares increases.
- The issue price and discount show what new investors are paying.
- The use of funds matters: productive investment is different from repeatedly covering cash shortfalls.
What to check next
Look for the amount raised, issue price, dilution, who can participate, the use of proceeds and how much cash the company may need next.
Reviewed by Sovest for plain-English financial education. For education and research only—not financial advice.