capital increase

A capital increase is when a company raises additional funds by issuing more shares to investors or existing shareholders. This process boosts the company's financial resources, supporting growth, paying debts, or funding new projects. Essentially, it means the company is expanding its ownership base and overall value through increased investment. Shareholders may experience their ownership percentage change depending on how the new shares are distributed. Capital increases can be done through different methods, such as a rights issue or private placement, and usually require approval from shareholders and regulatory authorities.