A rights issue is a way for a listed company to issue new shares to existing shareholders in order to raise funds. When a listed company announces a 10-for-3 allotment plan, it means that every shareholder holding 10 original shares has the right to purchase 3 new shares according to a certain proportion.
Allotment payment process
Confirm the allotment optionFirst, shareholders need to confirm whether they have a rights issue, which is usually confirmed by checking the company's rights issue announcement or communicating with a broker.
Funding Preparation: Shareholders need to calculate the amount of allotment payments that need to be paid. This is usually the allotment price multiplied by the number of allotment shares.
Payment MethodUsually, brokerages offer a variety of payment methods, such as online bank transfer, ATM transfer or over-the-counter payment.
Timing of payment: Shareholders need to complete the payment within the stipulated payment time, otherwise they may lose the right to allotment shares.
Confirm the allotment resultAfter the payment is completed, the shareholder should confirm with the brokerage whether the allotment is successful.
Precautions
Shareholders should carefully check the allotment information before making contributions to ensure the accuracy of the amount and amount of contributions.
If you have any questions, you should contact your brokerage or company in time.
In conclusion, a rights issue transaction is a way for listed companies to raise funds, and shareholders need to understand and follow the relevant payment process and precautions when participating in the rights issue.