rights issue


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Rights Offering

In stock, the ability of a shareholder to maintain the same percentage of ownership in a company should the company issue more stock by buying a proportional number of shares at or below the market price. This protects the investor from devaluation of his/her shares if the company decides to hold a round of financing. The purchase of this proportional number of shares usually takes place before the new issue is offered to the secondary market, and must be exercised before a certain date (known as the expiration date) if the shareholder is to maintain the same percentage of ownership. Rights offerings or issues are also called subscription rights or simply rights. See also: Anti-dilution provision.

rights issue

the issue by a JOINT-STOCK COMPANY of additional SHARES to existing SHAREHOLDERS at a price which is generally a little below the current market price. Rights are issued to existing shareholders in proportion to their existing shareholdings, and shareholders can sell their rights if they do not wish to subscribe for extra shares. Compare CAPITALIZATION ISSUE.

rights issue

the issue by a JOINT-STOCK COMPANY of additional SHARES to existing SHAREHOLDERS at a price that is generally a little below the current market price. Rights are issued to existing shareholders in proportion to their existing shareholdings, and a shareholder can sell his or her rights if he or she does not wish to subscribe for extra shares. Compare CAPITALIZATION ISSUE.
References in periodicals archive ?
The rights issue is a financial instrument representing the rights that are legally granted to the company's shareholders to have priority in subscribing for the company's capital increase shares that will be issued.
Raja commented, "We were delighted to advise ADIB in connection with its successful rights issue, which we hope will enable ADIB to solidify its capital base and maintain its strong position in the UAE market.
This is the bank's second rights issue in less than a year.
11 crore shares after the completion of rights issue offering.
will be made following the closing of the Rights Issue.
Taking this into consideration, as well as the costs of complying with the legal requirements and the requirements of the regulatory authorities relating to the shareholders with registered addresses in various jurisdictions outside of Australia, New Zealand, the Hong Kong SAR and the Cayman Islands, the Company has formed the view that it is unreasonable to extend the Rights Issue to those shareholders who do not reside in Australia, New Zealand , the Hong Kong SAR and the Cayman Islands.
Shareholders' approval is still required, with a vote on the rights issue expected to be held on February 17.
Former chief executive Bob Diamond, who was forced out of the banK in the waKe of its Libor scandal in 2012, was among those to buy shares in the rights issue.
In similar remarks in December, Amoli Larijani lambasted the West's double-standard policies and stances on human rights issues, and said the hegemonic powers use human rights as an instrument to pressure independent states.
Saudi Fransi Capital confirmed that the receiving banks had received subscription applications for in excess of 632 million shares by the close of the rights issue offer period, representing demand of SR6.
The board has approved an underwriting syndicate of existing shareholders and other investors that will subscribe the rights issue by NOK60m.
6m shares not taken up in the rights issue for 75 cents per share, a premium of 20 cents to the rights price.

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