Africa Prudential Registrars Plc has opened its rights issue to existing shareholders who were on the register as at Tuesday August 20, 2013. The company plans to raise N1.2billion by issuing 1billion new shares on the basis of 1 for 1. At the end of the exercise the company’s shares will double to 2billion units. Their share price is currently N1.86 and I expect it to drop further close to the current rights issue price.
The acceptance List opened on Tuesday October, 8, 2013, while acceptance list will close on Friday November, 15, 2013. If you planned to buy this stock then you might as well wait for the price to drop further as you won’t be qualified to pick up rights. A price of between N1.2-N1.32 (10% premium) is probably an ideal price.