Rights issue or preferential offer are common ways of equity fund raising (EFR) for REITs to raise funds, mainly for acquisition or improve balance sheets. The main difference between the 2 is the renounceable rights; in which unitholders could sell their rights in rights issue but couldn’t do so in preferential offer. It would be confusing if you haven’t experience through on any of these. Today, let’s go through what are the key dates and figures to take note.
I will take the current IREIT Global rights issue as an example:
Too many dates and looks confusing? Lets only focus on those dates which I’ve highlighted:
- i) 24 Sep – If you want to be entitled to rights, you would have to buy IREIT shares (mother shares) from the open market by this day. 25 Sep would be the ex-rights date, which means you are “excluded” for entitlement.