I'm always very interested in rights issue.
There's a new kid on the block just announced today. That's for OCBC. They bought into WingHang bank listed in HK, maybe even over paying for it. The big idea is that they can raise the funds for the purchase by doing private placements (Boo!), borrow money and increasing their debts (not too good, in the light of ever increasing capital requirements by central banks worldwide), and issuing rights. I think they are doing a combination of both rights and debt, which is quite a good move.
The terms of the rights issue is as follows:
1. One rights share for every 8 existing ordinary shares.That is, if you own 1000 shares or 1 lot of OCBC shares before XR, you'll be entitled 125 rights shares.
2. Each right shares is at an issue price of $7.65. The price as ......