Corporate events mean material changes that occur within a company and affect its shareholders. Such events may include financial transactions such as the distribution of securities, share repurchases, or the granting of rights to participate in future company actions.
Below are several other types of corporate events that may affect shareholders.
1. RHDI - Interim Securities Offering
(Corporate Action: Rights Distribution / Interim Securities)
This is a corporate event in which investors are distributed interim securities, which grant the holders the right to participate in future corporate actions.
Most often, these are rights that can be exchanged for additional shares upon future dividend payments, either in cash or in securities. This allows for the acquisition of additional company shares on more favorable terms in the future.
2. BONU - Additional Issues
(Corporate Action: Additional Issue of Securities)
This is a corporate event in which investors receive new securities issued in excess of the initial amount (usually without additional payment).
An additional issue may occur:
- By increasing the authorized capital;
- In the form of bonus shares;
- By converting debt obligations or during a corporate restructuring.
New shares are distributed pro rata shareholding as of the designated date, so their share is retained in the company.
3. DTCH - Dutch Auction Repurchase Offer
(Corporate Action: Share Repurchase Offer)
This is a corporate event in which an interested party offers to repurchase shares through a Dutch auction.
Shareholders indicate the price at which they are willing to sell their shares, within a specified range. The buyer accepts the lowest bid, allowing the buyer to repurchase the shares on the most favorable terms.
4. TEND - Tender Offer to Repurchase
(Corporate Action: Tender Offer)
Tender offer means an offer by a third party to repurchase securities from shareholders. Holders are offered to sell or exchange their securities under the terms of the tender. Such offers are often associated with a shareholder's intention to exit the company, a merger, or an acquisition.
The terms of the tender offer can be favorable to shareholders, as the price is often above the market price.
5. RHTS - Rights Issue/Subscription Rights/Rights Offering
(Corporate Action: Share Offering - Subscription Rights)
This is a mechanism whereby existing shareholders receive a priority right to purchase additional shares before they are offered to outside investors. The rights are granted pro rata the shareholder's current stake, allowing them to maintain a proportional stake in the company's capital.
The shareholder may:
- Exercise the right and purchase shares at a preferential price;
- Waive the right, in which case it can be sold or abrogated.
This gives shareholders a certain flexibility in their decision-making.
6. CERT - TEFRA D Certification for Non-US Persons
(Corporate Action: Regulatory Confirmation of Status)
This is a regulatory confirmation that the holder of the securities is a Non-US Person.
This requirement applies when exchanging temporary certificates for definitive securities and is necessary for regulatory compliance when issuing securities outside the US.
7. NOOF - Non‑Official Offer
(Corporate Action: Non‑Official Offer of Securities)
This is an offer to buy or sell securities outside of formal procedures – without a stock exchange listing or public offering.
Such offers are informal in nature, can be more flexible, and are not always subject to strict regulatory requirements.
Conclusion
All of the above corporate events are important for shareholders: they can affect their stake in the company, the value of assets, and the opportunity to participate in profitable transactions. To make informed investment decisions, it's important to stay informed about such events.
We recommend regularly monitoring the issuer's announcements and consulting with your broker if necessary.
Important!
In this section, the examples provided by Freedom Finance PLC (hereinafter referred to as the Company) are hypothetical, illustrative, and intended to provide a general explanation of the relevant provisions. These examples are not intended to apply to specific circumstances, do not take into account the individual circumstances and conditions of the Client, and should not be relied upon as the basis for making any investment or other decisions.
The Company assumes no liability for the accuracy, completeness, or interpretation of the information provided, or for any losses the Client may incur as a result of its use. The Company also assumes no liability for any consequences of investment decisions made by the Client based on this information.
More detailed risk information is available in Annex 4 of the Brokerage Services Regulations, which is posted on the Company's official website.