Capital action tool
Pre-emptive Right Calculator
Estimate theoretical right value, subscription payment and adjusted price based on existing shares, current price, rights issue ratio and subscription price.
Calculator
Pre-emptive right calculator
Enter existing shares, current price, rights issue ratio and subscription price to estimate theoretical right value.
Results are estimates. The right may trade at a different market price and company announcements should be followed.
Pre-emptive right calculation formula
- New shares
- Existing shares × rights issue ratio / 100
- Subscription payment
- New shares × subscription price
- Theoretical adjusted price
- (Current price + rights issue ratio × subscription price) / (1 + rights issue ratio)
- Theoretical right value per share
- Current price - theoretical adjusted price
- Total theoretical right value
- Theoretical right value per share × existing shares
Example pre-emptive right calculation
If an investor has 1,000 shares, the current price is 20 TRY, the rights issue ratio is 100% and the subscription price is 10 TRY, 1,000 new shares can be subscribed. The theoretical adjusted price is 15 TRY, the theoretical right value per share is 5 TRY and the total theoretical right value is 5,000 TRY.
Frequently asked questions
What is a pre-emptive right?
A pre-emptive right gives existing shareholders priority to subscribe to new shares in a rights issue.
How is theoretical right value calculated?
In a simple theoretical calculation, the difference between current price and theoretical adjusted price is treated as the right value per share.
Does this calculator show the market price of the right?
No. It only estimates theoretical value. Actual market price may differ depending on supply and demand.