subscription ratio

Subscription Ratio

In a rights offering, the number of rights required to buy a share in a publicly-traded company. A rights offering allows current shareholders to buy more shares, especially of a new issue, at a discount from their market value. The subscription ratio describes the number of shares one must currently hold in order to effectively receive a free share.

subscription ratio

The number of rights required to purchase a single share of a security in a rights offering.
References in periodicals archive ?
Under the terms of this rights issue, shareholders in Mekonomen have preferential rights to subscribe for four new shares per seven existing shares, or a subscription ratio of 4:7.
Consus contemplates to issue up to 39.9 million new ordinary registered shares with no par value at a subscription ratio of 11:23 and a subscription price of 7.20 per new share.
Tunisian investors believe that IPOs with low subscription ratio are overvalued.
Prime Office AG will publish the number of new shares that will be issued for the cash capital raise as well as the subscription ratio on 28 January.
Third, by comparing post-SEO performance rights issues cross-sectionally based on subscription ratio; if managers time SEOs, we should see a more pronounced underperformance for issues with a high subscription ratio.
Wilex issued a total of 3.2m new shares at a subscription price of EUR3.10 apiece and a subscription ratio of 27:4.
The company plans to issue 10.3m new shares to its existing shareholders at a subscription ratio of 37:10, at a price of EUR3 each.
Judging from the progress of subscription, among the on-going large-scale H share public offering projects, New China Life Insurance boasts the highest subscription ratio of lock-up cornerstone investors during its share offering in HongKong, which is more than 50%.
8 November 2011 - German fibre-optics technology specialist Euromicron (ETR:EUC) said yesterday it will carry out a share issue consisting of up to 1.5m shares with a subscription ratio of ten-to-three, seeking gross proceeds of up to EUR24.6m (USD33.9m).
The island's biggest lender said about 164.7 mln shares in its rights offering were subscribed for at 2 euros each, giving a subscription ratio of 95.4%.
Shareholders were granted a one-for-two subscription ratio.
The subscription ratio is 2:15, which means the rights offering to existing shareholders will be in the ratio of two new shares per 15 existing shares.