Private placement frenzy

Rakuten Trade head of equity sales Vincent Lau said the movement in share prices may be driven by news flows and investors may want to be part of the turnaround stories or the companies’ ventures into new businesses.

PRIVATE placements are all the rage over the past year as listed entities hog the equity market for fundraising.

In a pandemic-hit economic environment, it has become a cheaper and more efficient avenue to raise cash, particularly for those whose financial performances are quite weak.