Australian Equities Capital raisings, company-specific events and how corporate Australia is coping

Australian companies raised more money from follow-on offerings in April than at any other point in history, including the depths of the GFC (Source: Bloomberg).

Following a relaxation in the capital raising rules by the ASX in March, more than 60 companies raised capital by issuing deeply discounted shares – and these were the lucky ones, some cash strapped corporates have been unable to tap investors to shore up their balance sheets.

Rhett Kessler, the CIO and Fund Manager of the Pengana Australian Equities Fund provided a webinar update to investors in mid-march, but it feels like a years’ worth of news has occurred since then.

Rhett Kessler and Anton Du Preez accordingly provided an additional update on Tuesday, 19 May providing their perspectives on how corporate Australia is coping through the crisis, company-specific events that may have been overlooked or misunderstood, and the recent spate of capital raisings, touching on those that the fund participated in and those that it didn’t.

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Pengana Capital Group