DFKing


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AST Phoenix Advisors and CST Phoenix Advisors are now integrated with D.F. King & Co., Inc.

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Rights Offerings

We are experts in rights offering and can educate and counsel you through the entire process.

Rights offerings raise additional capital from existing shareholders. Existing shareholders can purchase additional shares from the company at a fixed price to maintain their pro-rata interest in the company.

Rights offering can be non-transferable or transferable:

  • Non-transferable - Shareholders can exercise their rights or let them expire.
  • Transferable – Shareholders can sell their rights if they choose not to exercise them.

Offerings usually have an oversubscription option, so if a shareholder buys their full basic subscription privilege and wants additional shares, they can oversubscribe. Sometimes, a company has a large shareholder that provides a standby agreement to buy additional shares if the offer is undersubscribed. These are all aspects that we can discuss with issuers considering a rights offering, and then explain to shareholders when the offer is launched.