Join Australia's most dynamic and respected property investment community

STAN rights issue - need some advice

Discussion in 'Other Asset Classes' started by James Bond, 24th Nov, 2015.

  1. James Bond

    James Bond Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    78
    Location:
    Melbourne
    Hi, Standard Chartered Bank, who I have shares in, has seen their value plummet recently, and they have recently announced a rights issue.

    I've not been involved in one of these before, and was wondering if anyone can help me with the pros and cons of the three options available to me.

    The following options are available:

    ·Take up my rights at 465p (total cost £827.70.)
    ·Take no action and allow the rights to lapse (I may receive a cash payment after the rights issue if I take this action)
    ·Sell my rights in the market.

    The current share price is 560p.

    Can anyone offer me more advice to help me make a decision?

    Thanks

    JB
     
  2. The Falcon

    The Falcon Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    957
    Location:
    Sydney
    I guess the starting point with any rights issue is what is your view on the prospects of the business? If its positive, you take the rights issue pretty much every time.
     
  3. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    1,717
    Location:
    Brisbane..
    Australian Banks have this every now and again ,the last one for CBA was $71.50 ,myself i have bought into every one from the start,imho..