Raising equity

Many listed companies are raising equity capital to improve their balance sheets. Shareholders of many companies are willing to take the short-term pain of having their shares diluted by new issues to protect their investments and ensure that the companies are more conservatively geared in a difficult market. "The only certainty that will turn equity markets around is this process of capital raisings," said Angus Gluskie, a fund manager at White Funds Management. "It's a small price to pay." But it will only work as long as investors will supply companies with cash, amid falling equities prices.