By: Derek Lim

I have figured out the problem to my calculation of PSC price after rights issue.

Current Market Price: $0.15
After 5:1 share consolidation,
Theoretical Market Price after share consolidation:
= $0.15*5
= $0.750

After 1 rights share @$0.33 for every 2 shares based on New Market Price of $0.750
Theoretical Market Price after rights should be
= {[200 shares * $0.750 (Current Market Price)] + [100 rights shares * $0.33 (rights exercise price)]} / [200 + 100] (Total no. of shares after exercise rights)
= ($150 + $33) / 300
= $0.610