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New share issue

New share issue

A new share issue is when a limited company issues new shares for payment to increase its capital.

What is a new share issue?

A new share issue is a share issue in which a limited company issues new shares for payment, usually in cash. The purpose is to bring new capital into the company, for example ahead of a growth phase.

 

What happens in a new share issue?

When new shares are issued the share capital increases, and existing owners' stakes are diluted if they do not subscribe for their part. The terms are decided by the general meeting or the board within the Companies Act. Afterwards the share ledger and cap table must be updated. In NVR you record the issue and get an updated cap table instantly — see how.

Record a new share issue
Henrik Kristensen, NVR
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Related terms

Share issue

A share issue is when a limited company issues new securities, usually shares, to raise capital.

Rights issue

A rights issue is a new share issue in which existing owners have priority to subscribe for new shares.

Share capital

Share capital is the capital the shareholders contribute to a company in exchange for shares.

Cap table

A cap table is an overview of how ownership in a company is distributed among its shareholders.