How Japan’s first rights issue is structured

Author: | Published: 26 Mar 2010

A Japanese company is to complete the country’s first rights issue thanks to flexibility from the regulators. Demand for this offering will dictate the success of future rights issues in Japan.

On March 5, Takara Leben announced that it was undertaking a ¥5 billion ($54.3 million) rights issue. The subscription rights will be listed on the Tokyo Stock Exchange on April 1 and will allow trading until May 24 2010.

“The company is doing a rights issue to protect existing shareholders from dilution that would happen if it did a third...