In just a few months, the world has been plunged into an unprecedented crisis due to the COVID-19 pandemic. Governments are implementing various measures in response, as the global economy takes a hit and companies face challenges to their cash flows and balance sheets. Indeed, the financial and economic fallout from the COVID-19 pandemic looks set to overtake that from the 2007 global financial crisis.
Economic activity has dropped drastically and in some industries, has come almost to a halt. There has been a sharp fall in the market value of listed companies, and many are experiencing cash flow and liquidity issues.
Even with stimulus measures introduced by the Singapore Government, many companies are still experiencing the tightening of credit. There remains the need for funds from other sources. In this regard, listed companies (Listcos) have the additional option of looking to the capital markets to raise funds through the issue of new equity or debt, or a combination of both, typically by way of rights issues or private placements.
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