Open offer

Securities - equity - issuance.

In the context of securities issuance, an open offer is an offer to existing shareholders to subscribe in cash for new shares or other securities in a company, pro rata to their existing holdings.

It is similar to a rights issue.

However, unlike in a rights issue, there is no allotment of nil paid rights which are tradeable during the offer period.

Shareholders must take up and pay for the securities offered to them under the open offer, failing which the offer lapses at the end of the offer period.

See also

• Allotment
• An introduction to equity capital
• Equity
• Capital
• Issuance
• Initial public offering
• Nil paid
• Offer
• Placing
• Pre-emption rights
• Rights issue
• Security
• Share
• Shareholder
• Theoretical ex-rights price
• Trombone