CDC is off to the races with Infratil's $1.15b cap raise
Source: 123RF
Quite a few years ago, Xero demonstrated the wisdom of raising money before you need it when you're sure you are going to need it.
When the market turned sour, and its share price sank to less than a third of its then record over the course of 2014, the accounting software company still had something like 18 months funding in the bag and didn't need to worry overmuch about its plummeting share price.
Now that I think of it, I'm surprised we haven't seen more examples of this.
But Infratil has just demonstrated the principle with its $1.15 billion capital raising, mainly to fund an acceleration of CDC's development programme, although other companies within the portfolio will also benefit.
Infratil owns 48.2% of CDC, which is now its largest investment and likely to only increase as a percentage of the portfolio as a result of the capital raising.