Iggy’s Journal: What a Rights Issue Does to Your Shares, and the Three Choices You Get When One Arrives

Sat 17 Oct 2026 | Midday

The Numbers

An illustration from the episode: a S$1 share with a 1-for-4 rights offer at 60 cents. The theoretical adjusted price becomes 92 cents, so the discount is already reflected in the lower share price.

Suppose you own 4,000 shares. If you take up 1,000 new shares at 60 cents, you pay S$600 and own 5,000 shares worth S$4,600 at the adjusted price. If you do nothing, your 4,000 shares are worth S$3,680, which is S$320 less than before, the value of the rights you did not use. Your ownership slice also becomes one fifth smaller.

My Personal Take

The 60 cents looks like a gift, but the price has already moved to 92 cents, so the discount is not extra money. What the offer costs you or gives you depends on what the company does with the cash it raises. In the episode I go through the three choices, and the question I ask about what the money is for.

📺 YouTube: https://youtu.be/gpaQvJfzaq0

Not financial advice. Iggy’s Forensic Compliance Standards apply.