What is a Rights Issue?

A 'Rights Issue' is an offer to existing shareholders allowing them to subscribe to new capital in a company by purchasing additional shares.

'Rights' are issued via a predetermined ratio based on the shareholder's current holding of shares. The new shares are usually available at a discount to the current market price.

'Renounceable Rights' are Rights that have been allocated to shareholders which are tradeable on the market while valid. Owners of Renounceable Rights have the following options:

  • Exercise the Rights before the application close date (purchase the new shares).
  • Sell them on the market (while Rights are valid).
  • Choose to do nothing (Rights will expire on a specified date).

If you want to exercise rights that you received through a rights issue or bought on the market, please contact the share registry before the application close date. Here’s how to find the share registry details.

 

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