A rights issue is an invitation to the existing shareholders to buy additional shares of the company at a discounted price within a specific time frame. What is a Rights Issue? A rights issue is a way for a company to raise capital by offering additional shares to its existing shareholders . Instead of issuing new shares to the public, the company provides its current investors with the right to buy more shares, usually at a discounted price. 🎯 TL;DR Rights Issue = You invest more money to buy extra shares at a discount. Bonus Issue = You get extra shares for free, like a loyalty reward. In short: Rights Issue = Optional Investment. Bonus Issue = Free Gift. Recent Rights Issues – What’s Cooking in the Market? Let’s take a quick look at companies currently raising funds via rights issues and what we can learn from them. Rights issues come in various forms, each offering different levels of flexibility and security for both the company and its shareholders. The choice of rights issue depends on factors such as the company’s capital needs, prevailing market conditions, and long-term financial strategy.
