Share offer: British Airways Airbus planes stored on the tarmac of Marcel-Dassault airport at Chateauroux in France during the outbreak of the Covid-19. British Airways owner International Consolidated Airlines Group SA has recently announced bumper share offerings. — Reuters
THE months since coronavirus swept the world have been a bumper period for listed companies selling more stock.
This isn’t yet on par with the amount of capital banks had to raise after the financial crisis, but it’s a welcome change. A business with a bigger equity buffer provides comfort in troubled times – more so than being hooked on debt, which must be repaid.
Until recently, companies were hellbent on shrinking their share counts via stock buybacks, or they’ve delisted entirely following a debt-funded takeover or buyout.
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