QUOTE(Okina @ Aug 15 2012, 09:19 PM)
HEKTAR Rights issue has just been announced, RM1.25 per Rights unit.
If I want to buy the rights from the open market, does that mean I have to pay RM1.25 (assuming someone wants to let go at that price) to the seller and then pay RM1.25 again to the Registrar (to exercise the Right)?
I'm new to exercising rights issue. Sorry if the above question sounds stupid. Tried looking up the AMFIRST rights issue for any examples but couldn't find any and the Stock FAQ sticky did not go indepth.
QUOTE
Renounceable rights issue of 80,000,250 new units in Hektar Real Estate Investment Trust ("Hektar REIT") ("Rights Units") on the basis of one (1) Rights Unit for every four (4) existing units held in Hektar REIT as at 5.00 p.m. on 3 September 2012 ("Entitlement Date") at an issue price of RM1.23 per Rights Unit ("Rights Issue")
Eg. you owned 1000 shares of HEKTAR REIT(mother share). You will be given 250 shares of HEKTAR Rights.
To exercise your Rights, you need to pay RM1.23 x 250 = RM307.50 to the Share Registrar "Mega Corporate Services Sdn. Bhd."
After which, you will own 1250 shares of HEKTAR REIT (mother share)