Since lockdown first gripped SA, nine large JSE-listed companies have indicated that they intend to raise more than R17bn as they look to shore up balance sheets, reduce debt or make possible acquisitions. And asset managers that hold positions in the largest companies on the bourse expect to see even more companies coming to market to raise capital as they navigate a battered economy.Thato Matsafu, head of primary markets at the JSE, said in a statement the exchange is "expecting some of our listed companies to raise additional capital to meet their current financial obligations". Raising capital is one of the reasons equities markets exist, but there are risks involved for investors, particularly minority shareholders, depending on the type of capital raise a company undertakes.The JSE said there are three types available: a general issue of shares for cash to the general market, a specific issue of shares for cash to specific investors, and a rights offer, in which ...
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