Post by Admin on Aug 4, 2013 13:01:26 GMT 8
Jul 02, 2013; 10:03am maruikun maruikun Rights vs Placement
Copy and pasted the comments by Runner.
rights and placement a bit different la... placement is outright purchase of the stock at certain price with certainity... right meant you got the right to purchase the share at certain price but you can chose not to buy if the price go below the exercise price... both method are used to raised fund by the company but placement meant certain investors are going to buy it based on certain info while right meant the company hope the retailers can subscribe to the right and buy the shares.
So if you are a retailer, you usually associate a right issue as the company need money and no choice to go to the market to raise.. while placement usually associate with the company is doing well and some BB is interest to pump money into it.. so after annoucement, which one will raise in price, you decide lor.. imho only hor
Copy and pasted the comments by Runner.
rights and placement a bit different la... placement is outright purchase of the stock at certain price with certainity... right meant you got the right to purchase the share at certain price but you can chose not to buy if the price go below the exercise price... both method are used to raised fund by the company but placement meant certain investors are going to buy it based on certain info while right meant the company hope the retailers can subscribe to the right and buy the shares.
So if you are a retailer, you usually associate a right issue as the company need money and no choice to go to the market to raise.. while placement usually associate with the company is doing well and some BB is interest to pump money into it.. so after annoucement, which one will raise in price, you decide lor.. imho only hor