CCAbbott888 wrote: aldo451 wrote: CC, I believe this statement is incorrect: IIf the proration factor is 50%, then everybody get 50% of what they subscribe to.
If the total subscription is 500 M or 50% of the 5B available, you would receive 1/2 if you subscribe to 20 shares. However, if you have enough cash to buy only 10 shares per right, your subscription is 100%.So, the % of what you ask for will vary depending on how many shares you subscribe to and the total ….correct?
Aldo 451
There will
only be a pro-rating factor if the total subscribed amount
exceeds 4.9B rights shares (or $75M in proceeds).
If the total subscribed amount exceeds 4.9B rights shares, then the company will work out the pro-rating factor, which is calculated this way, according to the NR.
Pro-rating factor=4.9B cap/ total subscribed number For example, if the total subscribed number of the rights shares=9.8B, then
the pro-rating factor would be 50% (=4.9B/9.8B)
Then in this case,
everybody will get 50% of whatever number of shares they subscribe.
Investor A who subscribe 20 shares will get 10 shares.
Investor B who subscribe 10 shares will get 5 shares.
Investor C who subscribe 2 shares will get 1 shares.
However,
if the rights offer is NOT over-subscribed, then everybody gets ALL that they subscribe.