I recently subscribed to the 1:2 Stock Rights Offering of Robinsons Land Corporation (RLC). As a current stockholder, I was entitled to one (1) rights share for every two (2) common shares owned.
The rights offering was RLC’s way of raising additional capital. By issuing up to 1.364 billion common shares at P10 per share, the company is expected to raise as much as P13.6 billion.
What are Stock Rights?
Stock rights are basically the right to purchase additional shares of the company. This right is only given to existing shareholders as of the ex-date, and is not available to non-stockholders. It is a company’s way of raising additional capital. In the case of RLC, the company said proceeds will be used for land acquisition, project construction and development, possible international expansion and other general corporate purposes.