CORPORATE ACTIONS • GUIDE

Rights Issue Explained

Understand rights issues, entitlement ratios, issue price, record dates and dilution.

A rights issue gives eligible shareholders an opportunity to subscribe for additional shares.

Key terms

Read the entitlement ratio, issue price, record date and subscription window.

Why capital is raised

Funds may support expansion, debt reduction or working capital. The reason for the raise matters.

Dilution

Shareholders who do not participate can see their ownership percentage fall depending on the structure.

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