G3 Global’s third cash call raises eyebrows

Rakuten Trade's Lau says that private placements, if undertaken frequently, can dilute the earnings per share of a company.

AS G3 Global Bhd plans another cash call for the third year in a row, the proposal has raised eyebrows considering that the group’s share base keeps ballooning post-pandemic.

Dilution of existing shareholders aside, the enlarged share base seems to have also weakened the share price as G3 Global’s market capitalisation shrunk tremendously.