They're not worth more. The number of shares is increased by the amount that was issued. So that larger amount of equity is split among more shares.

A simple example:

Current equity of $100B, 100 shares outstanding. Each share is worth $1B, with 1% of voting power.

Then we issue $10B of equity via 10 shares.

Now we have equity of $110B, with 110 shares outstanding. Each share is still worth $1B, except each share now has 1/110 of voting power, instead of 1/100. Each share now only controls 0.91% of the company. Their ownership has been diluted.

Again, their economic value is the same as it was before.

You seem to be actively resisting the understanding that share dilution is not just about the company’s balance sheet.

[delayed]

No it isn't because the share price went down

Yes, that’s exactly what my example tells you. And share price remains the same. You keep claiming it goes up which is absolutely not what happens. And ownership share of the company goes down per share of stock. That’s the definition of dilution. A company can’t issue more shares and somehow you own more of the company as an existing shareholder.

You are describing a stock buyback. Issuing new shares is dilutive.

Buyback example:

There are 10 shares of ABC Corp, it has a market cap of $100. Each share is worth $10.

ABC corp buys back one share and destroys it, leaving 9 shares.

$100/9 shares=$11.11 per share.

Dilution example:

There are 10 shares of ABC Corp, it has a market cap of $100. Each share is worth $10.

ABC corp needs $10 so they sell one additional share which the board has authorized. There are now 11 shares.

$100/11 shares=$9.09

In summation, a buyback increases the value of each share and issuing more stock reduces the value of each share.

[delayed]

Except ABC corp has $90 in example A and $110 in example B