Capital increase

A capital increase is a financing transaction in which a company raises additional equity capital, increasing the funds available to it and potentially changing the ownership percentages of existing and new investors. The transaction may be used to finance operations, projects or expansion, with the resulting ownership determined by the terms of the share issuance. In an industrial and investment archive, this concept covers equity-funded partnerships, new investor entries and project financing completed through the issuance of additional company capital. It should be distinguished from a secondary share sale, in which ownership changes hands without new capital being injected into the company. Capital increases may therefore be relevant to investment announcements even when the underlying project is still under construction or planned for future operation.