Browse Corporate Finance

Rights Issues and Open Offers

Rights Issues and Open Offers covers Allotment, Nil Paid Shares, Open Offer, Oversubscription Privilege, and related corporate-finance topics for offering, underwriting, private-placement, rights-issue, and capital-raising analysis.

Rights Issues and Open Offers covers public offerings, IPOs, underwriting, private placements, rights issues, subscriptions, allocation, project finance, and other channels for raising capital.

Use these pages when an issuer raises debt, equity, or hybrid capital and the term affects disclosure, pricing, allocation, investor access, intermediary risk, or dilution. It sits inside Rights, Subscriptions, and Share Allocation, so readers can move up when the broader company-finance context matters.

Use the table below to choose the narrower corporate-finance branch before applying a term to a model, board memo, financing analysis, transaction review, or risk assessment. Move into the term page when the evidence source, calculation, agreement, filing, account, or governance right matters.

What This Branch Covers

AreaUse it for
AllotmentAllotment is the allocation of newly issued shares or securities to investors after an application, subscription, or offering.
Nil Paid SharesNil Paid Shares refer to shares issued by a company without requiring an immediate cash payment from the shareholder.
Open OfferAn open offer lets existing shareholders buy new shares without separately tradable rights, usually to raise equity capital.
Oversubscription PrivilegeAn oversubscription privilege lets eligible holders request extra shares not taken up by other investors in a rights offering.
Rights IssueA rights issue offers existing shareholders the right to buy new shares, often at a discount, to raise capital.
Stock RightsStock rights give shareholders or investors the ability to buy shares under specified terms, often in a rights offering.
Unsubscribed SharesUnsubscribed shares are offering shares not purchased by eligible investors during a subscription or rights period.

What to Check

  • Issuer, security type, offering method, investor eligibility, and market venue.
  • Prospectus, offering circular, subscription agreement, underwriting agreement, term sheet, or filing.
  • Pricing, allocation, lockup, dilution, proceeds, fees, backstop, and settlement timing.
  • Regulatory status, jurisdiction, exemption, underwriter role, and distribution mechanics.
  • Effect on capital access, ownership, leverage, liquidity, and disclosure risk.

Common Mistakes

  • Treating a fundraising announcement as completed financing.
  • Ignoring offering exemptions, investor eligibility, lockups, and settlement conditions.
  • Confusing primary issuance, secondary sale, underwriting commitment, and placement agency roles.
  • Discussing IPO or offering terms without checking the prospectus or offering document.

Issuance content is educational and does not provide securities-offering, legal, tax, underwriting, or investment advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Allotment

Allotment is the allocation of newly issued shares or securities to investors after an application, subscription, or offering.

Nil Paid Shares

Nil Paid Shares refer to shares issued by a company without requiring an immediate cash payment from the shareholder.

Open Offer

An open offer lets existing shareholders buy new shares without separately tradable rights, usually to raise equity capital.

Oversubscription Privilege

An oversubscription privilege lets eligible holders request extra shares not taken up by other investors in a rights offering.

Rights Issue

A rights issue offers existing shareholders the right to buy new shares, often at a discount, to raise capital.

Stock Rights

Stock rights give shareholders or investors the ability to buy shares under specified terms, often in a rights offering.

Unsubscribed Shares

Unsubscribed shares are offering shares not purchased by eligible investors during a subscription or rights period.

Revised on Sunday, June 21, 2026