AIMS AMP capital industrial reit announced a rights exercise last Friday. It's a confusing 7 rights units  for every 40 shares of mother shares at a rights unit price of  $1.08. I can never understand how they derive these kind of strange numbers. Anyway, I'm interested to arbitrage on the rights issue and I'm sharing this on the point of view of someone who has no shares of aims at all and is looking to start a position. I've written a post about this in the past - it's here.


There's 2 ways to do this:


1. Get an initial position size before XR that maximizes the number of odd lots that you need to round up to a whole number. You'll end up with a lower average price for all your lots because the rights units are priced at $1.08 while the pre-rights price is at $1. (Read more...)...