A rights issue is a way companies raise capital from existing shareholders on a pro-rata calculation of your existing shareholding.
Rights issues are either renounceable or non-renounceable. Renounceable rights mean you can sell your existing rights or buy additional rights on the market. Non-renounceable rights are not transferable and cannot be bought or sold on the market. Companies may include a shortfall or oversubscription facility as part of their rights issue offer, meaning you can apply for additional shares on top of what you are entitled to.
To be eligible to participate in a rights issue, you must own shares in the company on the record date (the date set by the company).
1. If you are eligible and wish to participate in a rights issue, you must: Respond to the invitation email Superhero sends to your registered Superhero email on the open date of the rights issue. If you did not receive the email, check your spam folder, or contact us through live chat. (If you have unsubscribed from our emails, you will not receive the invitation.)
2. Click on the invitation link and complete the details before the closing date stipulated in the email. Please note the deadline can change if a company closes their rights issue early. We will endeavour to notify clients if a rights issue closes early but this may not always be the case due to the short notice given by some companies.
3. Your application will only proceed if you have sufficient funds in your Superhero Wallet on the closing date. We will restrict the funds for the rights issue from your Superhero Wallet on the closing date. We strongly encourage having the funds available when you subscribe.
4. On the share issue date, your funds will be withdrawn from your Superhero Wallet and the rights issue shares will be allocated to your Superhero Account.
Registry processing times may affect the actual issue date of shares.