8% lower on the year, while its nil-paid
rights crashed 24% to 1.
In fact, China Trends allotted four nil-paid
rights share for every one share held by the qualifying shareholders in late-June and raised approximately HK$135 million beforeexpenses by way of the Rights Issue of 3,374,958,000 rights shares at a subscription price of HK$0.
Friday was the first day of dealing in Lloyds Banking Group nil-paid
Buying up the nil-paid rights cheaply would help "short" investors to cover their losses if there is a rapid recovery in HBOS's share price, because the value of the rights would also increase.
Buying the nil-paid rights at a higher price is a gamble, however because if HBOS's share price stays below 275p, the rights will expire as worthless on July 18.
BT private shareholders might have struggled to sell their nil-paid rights had The Share Centre not risen to the occasion.
Since a large majority of private shareholders will have less than 300 nil-paid shares, most will benefit from this service
04 per rights share on the basis of four nil-paid
rights shares for every existing share held.
The prospectus for RBS's rights issue, issued late on Wednesday, said dealings in nil-paid
new shares would start on May 15, which allows investors to sell their "rights" to new shares.
On the stock market, the existing shares, including those created for the new subscription, started trading ex-rights, changing hands around 22 1 /2p last week, within 1p of their peak price for the year, while the nil-paid
rights were quoted separately.
Dealings in Zeneca fully paid ordinary shares, Zeneca nil-paid
rights and ICI shares, ex-demerger, are expected to commence on June 1, 1993.
With any ordinary luck, the discount also gives those shareholders who feel disinclined to sign a cheque, the chance to pick up a little cash by selling their rights nil-paid