Open offer
A type of corporate action. Like a rights issue, an open offer (also known as an entitlement issue) is a way for a company to raise money by offering its existing shareholders the right to buy new shares at a discount to the market price.
On top of your ‘basic entitlement’, open offers have an ‘Excess Application Facility’, giving you the chance to buy additional discounted shares. This is a separate pool of subscription shares, and as it isn’t guaranteed, it can be scaled back if oversubscribed.
Where an open offer differs from a rights issue is that you don’t have the option to sell your rights in the market. And if you do nothing, unlike a rights issue you won’t receive a lapsed payment.
Popular terms
A market auction refers to the process where buyers and sellers place orders to buy or sell investments, with those...
A check on whether an investor receives a reasonable benefit from an investment product or service for the price they...
An alternative junior marketplace to the Alternative Investment Market (AIM), offering a place for small and typically less mature...