How to participate in rights issue

If you want to participate in the rights issue, it depends. If the company only distributes the shares to the original shareholders, then you must hold the shares at the end of the relevant equity issuance in date of record before you can participate in the equity issuance. During the allotment payment period, if the allocated shares are listed on the Shanghai Stock Exchange, enter the relevant allotment code in the direction of stock selling (note that there must be enough subscription funds in your account). The price is generally the default of the system, and the quantity is the position number of the allotment code you have in the stock position; For the stocks listed and traded in Shenzhen Stock Exchange, allotment subscription is the buying direction, and everything else is the same.

If it is a public offering, if you want to subscribe, you can only buy the shares to be distributed in the relevant date of record, and then you can get the priority placement right. Otherwise, we can only subscribe for publicly issued shares by drawing lots, and the subscription method can be carried out in the buying direction. Enter the subscription code for additional issuance, which is similar to subscription, except that the subscription number may not follow the minimum number of subscribed new shares.

What is a rights issue:

The rights issue refers to the behavior that a listed company puts forward a rights issue proposal to its existing shareholders after obtaining the necessary approval, so that the existing shareholders can subscribe for the rights issue shares in proportion to the shares they hold in the listed company. Rights issue is one of the ways for listed companies to issue new shares.

Operation process of rights issue:

First, listed companies determine date of record. Shareholders hold shares on the registration date and have the right to issue shares or warrants. Then the warrants are listed and traded (at present, A shares do not trade warrants). After the transaction, the shareholders who own the allotment will purchase the allotment shares in proportion through the exchange within the prescribed payment period.

How to participate in rights issue:

According to the regulations of the exchange, if the rights issue cannot be carried out after the payment period of the rights issue, it is deemed that the shareholders voluntarily give up their rights to the rights issue. Here is a brief introduction to how to grasp the date of rights issue according to the news published in Securities News. Usually, investors will see three different rights issue dates in newspapers:

(1) A rights issue announcement published by a listed company, which will clearly state the rights issue code and date (including registration date, ex-dividend date, payment date, rights issue price, underwriters and other information).

(2) A period of time after the payment period of the rights issue begins, the listed company will issue a suggestive announcement of the rights issue to remind people to pay attention to the rights issue period again, so as to go through the formalities in time.

(3) There will be another reminder on the day of the rights issue payment deadline. For example, with? What is the deadline for payment of rights issue? This sentence reminds investors again. Investors usually pay attention to this information, go through the relevant formalities of rights issue as soon as possible, and record this important information in their notebooks when necessary. Knowing several important rights issue dates, we should consider when to pay the money. Because in the payment period, early payment is as effective as late payment. If the amount is large, late payment can make better use of your funds, which is a small skill in the use of funds. If the share price of your rights issue is in a consolidation state one week before the registration date, at this time, you may wish to sell some of the shares to be issued first and make some short-term spreads on other stocks. On the base date, if the stock price rises sharply and exceeds the price you threw out a few days ago, you will give up this part of the rights issue; If the stock price is lower than the price you throw at this time, you can make up the position in time.