Share Rights Issue & Bonus Issue

Ok, here's how to calculate the rights fraction. Because it's impossible to set the answer out in as neat and understandable way as on a tablet or screen, I shall separate the columns with a "#" sign You need 3 columns "Number" # "Value" # and "Extension" 5 (shares to start with before the rights issue) # 1.02 (value per share) # 5.10 value of investment 2 (shares per five held) # .60 (exercise price for each share under the rights issue) # 1.20 (value of additional investment) 7 shares (now held, after the rights issue) # ????? (theoretical ex-rights price per share) # 6.30 (total value of investment for 7 shares) That means that the theoretical price per share AFTER the rights issue is $6.30/ 7 shares = 90 cents per share and that, in turn, gives us a rights fraction of 1.02/.90 Can you now put this into the weighted average table? 5 columns needed: Date # Number # Period # Fraction # Wanes (weighted average number of equity shares) 1.4.13 # 160m # 4/12 # 1.02/.90 # 60,444,444 1.8.13 # 224m # 8/12 # - # 149,333,333 Wanes = 60,444,444 + 149,333,333 = 209,777,777 Does all that make it any clearer?

Dear Sir, 1st Aug 2013: 56,000,000 divide $0.25 = 224m shares as at 1st Aug 2013. How to get 160m of shares on 1st April 2013? Thank you

The rights issue was 2 for 5 and has already been recorded. The "after-recorded" figure is $224 and that's x*7/5 so "x" must $160 which when multiplied by 7/5 is $224 Is that better?

thank u very much

You're welcome