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's backers - investment banks Citi and UBS - as well as a clutch of high street banks - will hold almost 427 million new shares in B&B between them, representing 29.5% of its 1.45 billion shares in issue.
A further announcement on the rights issue is expected in due course.
Pepper said: "The rights issue smacks of a clumsy approach to stay independent.
Black women often criticized the tendency of black men to see interracial intimacy as a civil rights issue, instead insisting that who one dated and married was a private matter.
The above example implies that it is normal for prices of the new and old shares to be depressed during a rights issue, but most prices improve after the absorption of the issue.
Ambea's larger shareholders representing approximately 72.9% of the shares and votes in the company have expressed their support for the rights issue through subscription commitments or intentions to subscribe.
The rights issue, which opened on January 15, 2018, will close on February 21, 2018.
The above resolution of the Board supersedes and replaces the rights issue which was approved by the Board on 29 March 2015.
In the rights issue mode, shares are issued to existing investors at a pre-determined price, normally at a discount, in proportion to their holdings.
Shares under the rights issue will be offered at 0.6 cent per new share, with a maximum of 568,529,569 new shares to be issued.
Government backed financial organisation The Royal Bank of Scotland denies that its GBP12bn rights issue in April 2008 was imposed by the City regulator, the Telegraph reported on Saturday.
The first $1.3 million payable by Freefire in respect of the Rights Issue (see below) (whether taking up entitlements or in respect of underwriting obligations) shall be set off against the loan sum of $1.3 million.

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