It is no surprise that retail investors generally dislike rights issues. Every rights issue typically pushes passive investors into making decisions for themselves and creates a rush to look for liquidity. In this article, I will pen my thoughts on how retail investors can think about rights issues, using the recent IREIT renounceable right issue as a case study. What is a ‘renounceable rights issue’? When a REIT manager wants to raise capital to reduce debt or purchase more capital, they may announce a rights issue to raise money from existing investors. The REIT will offer more shares to existing investors often at a price lower than the market price. Doing this does not lead to a happy event – releasing more shares sometimes mean that investors’ stakes become diluted (% share of the company is reduced) as the rents collected has to be divided over existing shares in the market....