What is a new share issue?
A new share issue means a limited company issues new shares and sells them for payment — usually to finance growth, an acquisition or to strengthen its balance sheet. Because the total number of shares rises, each existing owner's percentage stake falls; this is called dilution. New share issues are one of the most common ways unlisted companies raise capital.
Common types of new share issue
- Rights issue (företrädesemission) — existing shareholders get priority to subscribe for new shares in proportion to their holding.
- Directed issue (riktad emission) — new shares are offered to a selected group, such as a strategic investor, without priority for existing owners.
- Issue in kind (apportemission) — the new shares are paid for with assets other than cash, for example another company.
Decision and process
A new share issue is resolved by the general meeting, or by the board under authorization from the meeting. The terms — subscription price, number of new shares and subscription period — are set out in the issue resolution. The new shares become valid only once the issue is registered with Bolagsverket (the Swedish Companies Registration Office).
What does a new share issue mean for you as an investor?
If you already own shares, your ownership percentage falls unless you take part. If the issue is done at a higher valuation than before, your holding may still be worth more in kronor. For a new investor, the subscription price is often a reference point for the company's valuation. On Accumeo, however, trading is mainly in existing shares (secondary trading), not in new issues.