What is a preemptive right?

Preemptive rights allow existing shareholders to buy new shares or convertible bonds issued by a company before others. This is based on the number of shares they already own. These rights protect shareholders from having their ownership stake diluted when the company issues more shares. Often, the price for these new shares is lower than the market price, giving preemptive rights some market value.

1.Preemptive rights issued by the exchange

Eligible shareholders who will receive preemptive rights in their accounts:
  • Shareholders still hold shares after the market closes on the trading day two days before the exchange's announced date.
  • We will send emails and system messages to eligible shareholders.