For all the talk about Australia having a well established and world-leading equity raising setup, and too many hungry bankers scrapping over too few deals, the cost of raising equity is going up.Boards are paying investment banks more to arrange and underwrite placements, rights issues and share purchase plans. Top 300 companies paid an average 2.49 per cent to raise equity in the financial year just ended, up from 2.02 per cent in 2025 and 2.15 per cent the year before.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
There’s a bizarre economics to ASX raising, and bankers are loving it
There is no greater test for a board and its respect for shareholders than how it approaches a capital call. The evidence shows they drive a bad bargain.
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