RE: Half expected an RI today10 Nov 2020 19:50
@ Sheena
An DO is a Rights Issue. All this means is that they would offer additional shares to a holder at a set price to raise additional funds for the company. This can be for any umber of reasons, such as reducing debt, to purchase vital new expensive equipment, or to expand the business. This does in the short term often depreciate the share price, but med to long term this levels itself out. Normally they offer these additional shares based on your current holding, for example you could be offered to buy 3 shares per 10 holding. You do not however have an obligation to take up the offer.
Hope this helps.