Colt Telecom became the latest company to announce a rights issue today.
A range of companies, such as the mining group Xstrata and a number of property groups, have launched cash calls in recent weeks to shore up their funding.
Today Colt said it was hoping to raise £178m by offering 31 new shares at last night's closing price of 84.5p for every 100 already in existence.
The market's reaction today suggested cautious approval, with shares nosing up 1.5% to 85.75p.
But Investec analyst Jonathan Groocock issued a sell note, warning that "excess liquidity will dampen performance".
"Management is clearly indicating a very uncertain outlook for full-year 2009, and in our view the dilutive impact of this capital raise seems excessive," he wrote in a note.
