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Rights Issue Value Calculator

Work out rights issue value instantly with clear inputs, formula shown and shareable results.

About Rights Issue Value Calculator

A rights issue sells new shares below market price, so the share price falls to a theoretical ex-rights price that blends old and new. The value of a right is the gap between that price and the issue price — which is what a non-participating holder gives up.

Formula

Theoretical ex-rights price

TERP = (N × cum-rights price + issue price) / (N + 1); right value = TERP - issue price

N
Old shares per new share

Worked example

With the default values below, Rights Issue Value Calculator returns Theoretical Ex-Rights Price of $306.0000. Change any input above and every figure here is recalculated in your browser.

Inputs used

Shares Heldaccepts 1–100,000,000
500
Cum-Rights Market Priceminimum 0
320
Existing Shares Needed Per New Shareaccepts 1–50
4
Rights Issue Priceminimum 0
250

Results

Theoretical Ex-Rights Price
$306.0000
Value Of One Right
$56.0000
New Shares You Can Subscribe To
125
Cost To Take Up The Rights
$31,250.00

Step by step

  1. 1Values used
  2. 2Theoretical ex-rights price
  3. 3Theoretical Ex-Rights Price= 306.0000
  4. 4Value Of One Right= 56.0000
  5. 5New Shares You Can Subscribe To= 125
  6. 6Cost To Take Up The Rights= 31,250.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

What happens if I do nothing?

Your holding is diluted and you lose the value of the rights, unless the issuer sells them on your behalf.

Is a rights issue bad news?

Not necessarily. It depends on what the capital is for — growth funding is read very differently from repairing a balance sheet.

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