Module III· ECM — Follow-on, ABB, Rights IssueAdvanced
Question
What are typical discounts and fee structures in DACH rights issues?
Answer
Rights issue subscription discounts can be large, often 25% or more to TERP or pre-announcement price, because rights preserve economic value for participating shareholders. Fees depend on size, underwriting risk, market backdrop, and sub-underwriting. They may include management, underwriting, and selling components, often lower in percentage terms for very large transactions.