Definition of rights issue in US English:

rights issue


  • An issue of shares offered at a special price by a company to its existing shareholders in proportion to their holding of old shares.

    • ‘Despite various restructurings, debt buybacks and rights issues, borrowings still stand at a staggering £6.6b.’
    • ‘There have been rights issues at both companies in the last two years.’
    • ‘This emotional bond is very useful if the company needs to raise money as these shareholders will often add to their holdings in rights issues and open offers.’
    • ‘DCC had sponsored Xtravision's flotation and underwritten two subsequent rights issues.’
    • ‘It also excluded transactions arising from rights issues.’
    • ‘The CEP has also subscribed to the rights issues of companies and has meticulously invested in treasury bills.’
    • ‘A full explanation of how rights issues work can be found here.’
    • ‘Earlier vessels were financed by rights issues, but these became difficult after a downturn in the Greek stock market.’
    • ‘This has since come down through disposals and a rights issues, but net debt stood at €978 million at the end of 2003.’
    • ‘Domestic investors are lining up to subscribe to rights issues from companies that have become more transparent or investor friendly than before the crisis.’
    • ‘Tayal said that there would be no more public issues or rights issues by the bank in the near future.’
    • ‘The amount of new paper that will come to the market this year will be huge - not just initial public offerings, but also rights issues.’


rights issue