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.
Already a subscriber? Log in.
Subscribe now for a chance to win your dream holiday!
![](https://cdn.thestar.com.my/Themes/img/sub_paywall_TSM.png)
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!