Warrants vs Rights Singapore
Warrants and rights both allow investors to buy shares at a set price — but they differ fundamentally in structure, duration, and who they are issued to. This guide explains both instruments for Singapore retail investors with SGX examples. Not financial advice.
Table of Contents
Contents — Click to expand
What Are Warrants?
A warrant is a derivative instrument giving the holder the right — but not the obligation — to buy shares at a specified exercise price before an expiry date. On the SGX, there are two main types: company warrants (issued by the company, creating new shares upon exercise) and structured warrants (issued by banks, settled in cash or shares without creating new equity). Structured warrants are the more common type on SGX and cover major blue-chip counters and indices. As at Q1 2026, SGX lists several hundred active structured warrants at any given time.
What Are Rights?
A rights issue is a capital-raising mechanism where a listed company offers existing shareholders the right to buy newly issued shares at a discounted price — typically 10–30% below market. Rights are proportional: if the offer is “1-for-5,” you receive one right for every five shares you hold. Rights have a short lifespan — usually 2–4 weeks — and you must decide whether to subscribe, sell your entitlements, or let them lapse. In Singapore, rights issues are regulated by MAS and announced via SGX.
Key Differences
| Feature | Warrants | Rights |
|---|---|---|
| Issued by | Company or bank | Company only |
| Available to | Any market participant | Existing shareholders |
| Duration | Months to years | Days to weeks |
| New shares created? | Company warrants: yes; Structured: no | Yes, on subscription |
| Can be traded? | Yes, throughout life | Yes, during nil-paid period |
SGX Examples
Multiple S-REITs conducted rights issues in 2020–2023, including CapitaLand Integrated Commercial Trust and Suntec REIT, to shore up balance sheets post-pandemic. Structured warrants on SGX are typically issued on DBS Group, Singtel, Keppel Corp, and the STI ETF. These carry leverage and expire worthless if the underlying moves against you.
What Should You Do?
When you receive rights: assess whether the subscription price is attractive relative to market value and the company’s fundamentals. If you don’t want to subscribe, sell your nil-paid rights on the SGX during the trading window — do not let them lapse for zero value. For warrants: understand that time decay (theta) erodes value daily. Structured warrants are speculative instruments best left to experienced traders. Long-term investors should focus on the underlying shares, not warrants.
For more on Singapore capital markets, see our guides on Rights Issue Singapore, Rights Entitlement Singapore, Placement Shares, Singapore Exchange (SGX), and IPO Singapore.