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Glossary · Capital Markets

What is Rights issue?

An increase in a company's capital through cash or in-kind contributions by existing or new shareholders.

In a rights issue, existing shareholders have pre-emptive rights to subscribe for new shares; these rights can be restricted so that shares are sold to investors. For listed companies, a rights issue requires a prospectus and a use of proceeds report.

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Last updated: October 22, 2026 · This definition is for general information only.

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