Recently, it seems that more and more companies are choosing to issue “Non-renounceable Rights” in equity raising activities instead of “Renounceable Rights “.
My friend “ B “from “ A Path to Forever Financial Freedom (3Fs) had just written a good blog post in explaining how to take advantage and possibility of making some “profit or lowering your entry price “ by capitalizing the rights issue offer by company from time to time. ( here ) , and his detail analysis on FLT’s asset acquisitions into Germany and Dutch industrial properties ( here )
First and foremost , allow me to explain more about “ Renounceable vs Non-renounceable “ Rights.
What are ‘Non-Renounceable Rights’ ( From Investopedia.com) Non-renounceable rights refers to an offer issued by a corporation to shareholders to purchase more shares of the corporation (usually at a discount). Unlike a renounceable right, a non-renounceable right is not transferable,