TIISETSO MOTSOENENG: How else to bolster corporate balance sheets? Hint: It’s not only via debt
Companies have good reason to avoid raising money from shareholders through selling new equity
For good reasons, some companies appear to painstakingly avoid raising money from shareholders through the sale of new equity.
Take Aspen Pharmacare, for example. Africa’s biggest generic medicines maker was plunged into turmoil in 2019 when investors dumped its stock on concern that it might be unable to shoulder its R54bn debt load.