The growing number of companies raising capital through equity issuance was a sign of positive economic growth. This was the gist of a Reuters report based on Thomson Reuters data. The said data revealed a 17% increase of equity capital raised this year. Equity capital raised so far totaled USD 491.2 billion. According to Reuters, this was a sign that corporate and investor confidence had grown.
Reuters also said that both primary and secondary market issuances had gone full speed ahead. Social media company Twitter was the latest firm to join the public offer bandwagon as it had announced plans for an IPO.
According to the report, companies preferred to get capital from its internal sources rather than sell more stock. The latter was seen as a last resort since it reduced a company's earnings per share while increasing the number of outstanding shares.
The report, however, said markets were favoring those who would get capital through equity issuance. Head of EMEA Investments Bill Street told Reuters, "Equity financing will come back in a bull or positive equity environment."
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