Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Rights Offer - Simple Explanation

Reply
Limitless
Contributor
Hi People Can someone offer a SIMPLE explanation of the rights offer. (What should a long term investor do?) Tx
0 Kudos
5 REPLIES 5
Preston
Super Contributor
Right issue is usually given to shareholder who has existing shareholding in the company. Example Mr A own 500 share and company declare a right issue that 2 for 1 issues. SO Mr A will recive 250 additional shares.
0 Kudos
royzen2
Contributor
And how will this impact the share price after these rights have been exercised? What's the catch?
0 Kudos
Pepi
Regular Contributor
the price has settled at about R2.55 so if you take up the rights @ R1.90 - that's 35% you gain - so if you think PAN is a good investment you take up the rights, conversely if you think PAN is not such a good investment you can sell your rights and make 25%.
0 Kudos
klapka
Super Contributor
I think PAN went ex rights yesterday.
0 Kudos
partridge
Super Contributor
If you are a long term investor you have answered your own question.
0 Kudos