What is a Rights Issue?

A 'Rights Issue' is an offer to existing shareholders allowing them to subscribe to new capital in a company by purchasing additional shares.

'Rights' are issued via a predetermined ratio based on the shareholder's current holding of shares. The new shares are usually available at a discount to the current market price.

'Renounceable Rights' are Rights that have been allocated to shareholders which are tradeable on the market while valid. Owners of Renounceable Rights have the following options:

  • Exercise the Rights before the application close date (purchase the new shares).
  • Sell them on the market (while Rights are valid).
  • Choose to do nothing (Rights will expire on a specified date).

If you want to exercise rights that you received through a rights issue or bought on the market, please contact the share registry before the application close date. Here’s how to find the share registry details.

By clicking on the "Download the CommSec App" buttons above, you will be directed to itunes.apple.com or play.google.com. These sites are not affiliated with CommSec and may offer a different Privacy Policy and level of security.

 

Disclaimer

© Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945. CommSec is a Market Participant of ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited.

The information on this page has been prepared without taking into account your objectives, financial situation or needs. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regards to their objectives, financial situation or needs, and, if necessary, seek appropriate professional advice.

The content on this page may not be distributed or reproduced without prior consent and any unauthorised use of the content may breach copyright provisions. CommSec does not give any representation or warranty as to the accuracy, reliability or completeness of any content on this page, including any third party sourced data, nor does it accept liability for any errors or omissions.

This site is directed and available to and for the benefit of Australian residents only.

Top