Rights issues

What is a rights issue?

When a company issues rights, they’re offering existing shareholders an opportunity to buy newly issued shares in the company (usually at a discounted rate). The number of rights issued are proportionally based on each shareholder’s current shareholdings. 

Rights can be either renounceable or non-renounceable. Investors with renounceable rights are able to exercise these rights, i.e. purchase the new shares, sell them on the market during the validity period or let the rights expire and not participate. Non-renounceable rights are issued by the company offering the shareholders the option to purchase additional shares of the company, usually at a price lower than the market price. The rights cannot be transferred to other brokers or sold in the market.

If you wish to exercise rights that you received through a rights issue or bought on market, please contact the respective share registry before the applications close date. If you have any questions feel free to reach out to the customer support team here.