Think of it as old fashioned capitalism - they raise more capital in the capital market and spend the money on physical capital (plant and stuff) which pays for

Think of it as old fashioned capitalism - they raise more capital in the capital market and spend the money on physical capital (plant and stuff) which pays for itself. The capital is not diluted it just changes from money to physical form. Dilution happens when you issue more ownership of a limited resource. In practise it is not quite so simple, which is why often capital raisings were issued to shareholders as rights to buy into capital raisings, which could be sold and other means, because control is dilutable as a limited resource.