Bursa Right Issue & TERP Calculator

Calculate Theoretical Ex-Rights Price (TERP) and determine the exact capital needed to subscribe to your entitled rights on Bursa Malaysia.

Corporate Action Strategies

1. Subscribe Full Entitlement

This maintains your percentage ownership in the company and ensures you do not suffer from the TERP price dilution. You must have the required cash available to subscribe.

2. Sell Nil-Paid Rights

In Malaysia, rights are often tradeable (e.g., ending with -OR). If you do not wish to subscribe, you can sell these rights on the open market to offset the dilution loss.

Key Benefits

Plan Your Capital: Use this calculator to know exactly how much cash you need to prepare before the subscription deadline.

Frequently Asked Questions

Get answers to common questions about using our professional trading tools.

A right issue is an invitation to existing shareholders to purchase additional new shares in the company. This type of issue gives existing shareholders securities called rights. With the rights, the shareholder can purchase new shares at a discount to the market price on a stated future date.

💡 Pro Tip:All our tools are 100% free with no signup required.

TERP is the estimated market price of a stock after a right issue. Because new shares are issued at a discount, the overall value of each individual share drops (dilution). TERP calculates this new weighted average price.
If you ignore the right issue, your percentage ownership in the company will be diluted. Furthermore, because the share price typically drops to the TERP on the ex-date, the value of your existing holdings will decrease. You should either subscribe to the rights or sell the nil-paid rights on the open market before they expire.

Still have questions? We're here to help.

This calculator is part of our advanced library of cryptocurrency calculators. Explore the fullCrypto Trading Toolsto optimize your strategy and manage risk like a professional.

Recommended Financial Reading & Resources

Expand your market intelligence and master risk management with our top recommended professional trading literature.

Explore by Market