Hi everyone, I’ve searched the forum and am unable to locate information on how to correctly record a rights issue.
Any assistance would be appreciated.
Jeremy
I’m finding myself in same situation and wonder if you found out a way to record rights issues.
There is no searchable info that I could find either even after 7 months.
Cheers Jon
A rights issue is just another acquisition event (BUY). Generally rights are either Renounceable (You can sell them on market) or Non-Renounceable (You take them up or they lapse)
How you go about recording it depends on what type of issue there is and what your intention is…
Non-Renounceable Rights issue that you don’t take up… is the easiest… If that is your plan then there is nothing to do. You did not take up the shares and you can’t sell them - the deal lapses and that is that.
Renounceable Issue that you decide to sell. Lets say ANZ have a rights issue (2022 1 new share for every 15 held at $18.90, You have 1,500 shares so you would get 100 Rights and if you took them up pay $1,890.00. You decided you have enough ANZ and want to sell the rights). In Navexa you would find a tradable instrument of ANZR (the code they would be on the ASX when you sell them). The issue was announced on 18/7/2022 and you’d set up a new code ANZR and enter a BUY for 100 Units at $0.0000000000001 (You may find that Navexa may balk at you for a zero cost if so enter a very very small amount and it will get you the right result).
You then enter a SELL say 1/8/2022 for $3.20 per share less any brokerage as you would normally do… I find this approach neatest as its clear you’ve held the rights for less than 12 months and being under another code will appear on the CGT report correctly.
If you intend to just take up the rights (either renounceable or non-renounceable) then go to the ANZ Shares and enter a BUY of 100 Units at cost of $18.90 and no brokerage … I find it useful to enter a comment that its a 1:15 Issue at $18.90 so I can remember it and you can attach an image of your form that you send back to the company. You may find that Navexa has done this in anticipation that you’ll take up the rights… In which case you just need to confirm it. (Note that if you decide to sell the rights (as above) then you would just delete this line as your purchase is done as part of the above.
Hope that was of assistance … I was looking for something else but noticed this question was not answered.