Rights Issue Calculator Singapore 2026
Calculate your TERP, rights entitlement, subscription cost, and yield impact for any S-REIT or Singapore stock rights issue — free tool with real-time results in SGD.
📋 Rights Issue Details
Last traded price before ex-rights date
Subscription price offered to existing shareholders
E.g. enter 0.20 for "1 rights unit per 5 held" (20%)
YOUR RIGHTS ISSUE ANALYSIS
⚠️ Not financial advice. TERP is theoretical — actual market price may differ. Figures in SGD.
Understanding Rights Issues for Singapore Investors
Rights issues are one of the most common capital-raising tools used by Singapore-listed companies and S-REITs. When a company or trust needs to raise fresh equity capital — to fund an acquisition, refinance debt, or strengthen its balance sheet — it often turns to a rights issue rather than taking on additional borrowing. According to SGX data, Singapore has seen dozens of rights exercises across its REIT sector alone over the past decade, with notable recent examples including the Keppel DC REIT rights issue in 2025 and several industrial and retail REIT fund-raising exercises. For retail investors holding units in an S-REIT or shares in a Singapore-listed company, a rights issue presents both an obligation and an opportunity: you can subscribe (buy new units at the discounted rights price), sell your nil-paid rights on the open market, or do nothing — each choice has different financial implications. This calculator helps you model those implications quickly and accurately, so you can make an informed decision before the subscription deadline. Not financial advice. All figures are for educational reference only. Data as at Q2 2026 unless noted.
What Is a Theoretical Ex-Rights Price (TERP)?
The Theoretical Ex-Rights Price (TERP) is the expected share or unit price after a rights issue completes, assuming the market values the combined portfolio — existing shares plus newly issued rights shares — at a weighted average of the two prices. It is a theoretical number: in practice, market prices can deviate significantly above or below TERP depending on investor sentiment, the quality of the acquisition being funded, and broader market conditions. The formula is: TERP = (Current Price × Existing Shares + Rights Price × New Rights Shares) ÷ Total Shares After Rights. The TERP is the single most important number to check before deciding whether to subscribe, sell your rights, or do nothing. If the current market price after ex-rights falls below TERP, it suggests the market is pricing in additional dilution or uncertainty.
Why Singapore Investors Must Understand Dilution
Unlike a cash dividend or a bond coupon, a rights issue changes the capital structure of the company. Your percentage ownership shrinks if you do not subscribe — this is known as dilution. For S-REIT investors who rely on consistent DPU (Distribution Per Unit) income, dilution means your per-unit dividend may increase (if the funds raised generate returns exceeding the cost of capital) or decrease (if the acquisition is DPU-dilutive in the short term). Singapore retail investors using their CPF Investment Scheme (CPFIS) or SRS funds to hold S-REITs should also be aware that rights subscriptions from these accounts require sufficient CPF-OA or SRS balances, and the timeline is tighter than cash account applications.
How to Use This Rights Issue Calculator
- Enter the current share/unit price: Use the last traded price before the ex-rights date. You can find this on the SGX website or your brokerage platform.
- Enter the rights issue price: This is the subscription price stated in the rights offer document (prospectus or circular). It is almost always below the current market price.
- Enter the rights ratio: Express as a decimal. For example, if the offer is “1 rights unit for every 5 existing units”, enter 0.20 (i.e. 20%). If it is “2 for every 10”, enter 0.20 as well.
- Enter your current holdings: Your number of existing shares or units as at the record date.
- Optionally enter the annual DPU/dividend per share: If you input this, the calculator will show your yield before and after the rights issue (based on TERP), helping you assess whether the rights issue is yield-accretive or dilutive.
The calculator instantly shows your TERP, entitlement, subscription cost, new total holdings, and theoretical P&L. Results update in real time as you adjust the inputs.
Pro tip: Combine this calculator with our S-REIT Total Return Calculator to model long-term portfolio outcomes after subscribing to a rights issue.
What Is a Rights Issue?
A rights issue is a fundraising mechanism where a listed company or REIT invites its existing shareholders to purchase additional shares or units at a pre-determined price — usually at a discount to the prevailing market price — in proportion to their existing holdings. The “right” to subscribe is attached to the record of existing ownership on a specific date called the record date. Unlike a public placement (where new shares are issued to selected institutional investors), a rights issue gives every existing shareholder an equal opportunity to maintain their proportional stake. For Singapore REIT investors, rights issues are particularly common when a trust acquires a large property portfolio and needs to fund part of the purchase price through equity rather than debt, keeping gearing ratios within MAS guidelines (typically below 50%). Recent examples include large industrial and data centre REITs that used rights exercises to fund cross-border portfolio expansions into Australia, Japan, and the United States. Understanding how to evaluate a rights issue — using the TERP, the discount, and the resulting yield impact — is an essential skill for any long-term Singapore income investor.
How TERP and Dilution Work: The Maths Behind Rights Issues
The Theoretical Ex-Rights Price (TERP) is calculated using a simple weighted average formula. Suppose you hold 10,000 units of an S-REIT at S$1.20. The trust announces a 1-for-5 rights issue at S$0.95 per unit. Your entitlement is 2,000 new units (10,000 × 0.20). The TERP calculation is: (S$1.20 × 10,000) + (S$0.95 × 2,000) = S$12,000 + S$1,900 = S$13,900 ÷ 12,000 units = S$1.1583 TERP. The rights price discount to TERP is (S$1.1583 − S$0.95) ÷ S$1.1583 = 18.0% theoretical value per rights unit. The dilution impact: if you do nothing, your 10,000 units are now worth 10,000 × S$1.1583 = S$11,583 (versus S$12,000 before), a theoretical dilution of S$417. This is why doing nothing is rarely neutral — you lose value proportional to the discount. Subscribing fully means your total cost is S$12,000 (existing value) + S$1,900 (subscription) = S$13,900, and your portfolio is theoretically worth 12,000 × S$1.1583 = S$13,900 — exactly breakeven at TERP. The real question is whether the market price after ex-rights exceeds or falls short of TERP, which depends on the quality of the acquisition and market sentiment.
Subscribe, Sell Your Rights, or Do Nothing?
When a Singapore company or REIT announces a rights issue, you typically have three choices. First, you can subscribe fully (or even apply for excess rights): this maintains your proportional ownership and avoids dilution. It makes sense if you believe in the long-term value of the acquisition being funded and have available cash or SRS funds. Second, you can sell your nil-paid rights on the SGX market during the trading window (usually about one week). The nil-paid rights trade at approximately the difference between the current market price and the TERP — so in the example above, the nil-paid rights would trade at around S$0.04–0.06 per right. Selling your rights partially offsets the dilution to your existing units. Third, you can do nothing — but this is usually the worst outcome for most investors, because the nil-paid rights expire worthless and your existing units are diluted. There is a fourth scenario relevant to CPF and SRS account holders: if you hold the rights-issuing stock in a CPF-IS or SRS account, your broker may automatically subscribe on your behalf if you have sufficient balances, or lapse the rights if you don’t act. Always check with your broker (Syfe, Endowus, or FSMOne) for the exact deadline applicable to your account type.
How to Subscribe to Rights Issues in Singapore
Subscribing to a rights issue in Singapore can be done through several channels depending on how you hold your shares. If you hold shares in a CDP (Central Depository) account directly, you will receive an ATM instruction letter and can subscribe via any of the major bank ATMs (DBS, POSB, OCBC, UOB) or through your internet banking portal. The subscription window is typically open for about 1–2 weeks. If you hold shares in a custodian account through a brokerage or robo-advisor platform, the process differs: FSMOne customers typically receive instructions via email and can subscribe through the FSMOne portal. Syfe and Endowus users should contact customer support well ahead of the deadline as each platform has different timelines for custodian-held rights. Tiger Brokers, Moomoo, and IBKR also have their own rights subscription processes. It is strongly advisable to act at least 2–3 business days before the stated deadline to allow for processing. Late or missed subscriptions cannot be recovered. The SGX rights calculator and the relevant REIT’s SGX announcement (found at sgx.com under the company announcements section) will confirm the exact ratio, price, and timeline. Use our S-REIT Dividend Yield Calculator to check the post-rights yield before committing.
Using CPF and SRS to Subscribe to Rights Issues
Singapore investors holding S-REITs or STI ETFs via their CPF Investment Scheme (CPFIS-OA) or Supplementary Retirement Scheme (SRS) accounts can also participate in rights issues, but with some important constraints. For CPFIS, your CPF Ordinary Account must have sufficient investible balance to fund the subscription. The CPF Board requires that you maintain the minimum balance after the subscription, so check your available CPFIS balance first. CPF agent banks (DBS, OCBC, UOB) handle the subscription process and will send you notification letters. Note that the CPF Board does not allow you to use the Special Account or MediSave for CPFIS equity subscriptions — only OA funds are eligible. For SRS, your SRS operator bank (DBS, OCBC, or UOB) will contact you and process the subscription from your SRS balance. Rights subscriptions using SRS funds count toward your annual SRS contribution limit? No — outflows from your SRS for investment subscriptions are not counted as new contributions. Use our SRS Tax Savings Calculator and CPF Investment Strategy guide to understand how CPFIS and SRS fit into your overall approach. As at Q2 2026, the CPF OA interest rate is 2.5% p.a. — any investment made via CPFIS must comfortably exceed this hurdle rate to justify the opportunity cost.
Rights Issues and Your Passive Income Strategy for Retirement
For Singapore investors building a passive income portfolio — particularly one anchored in S-REITs — rights issues are an inescapable part of the journey. Most Singapore REIT investors experience at least one or two major rights exercises over a multi-year holding period. The key question is whether the capital raised through the rights issue is deployed into DPU-accretive acquisitions. If a REIT raises equity at, say, S$0.95 per unit and deploys the proceeds into properties with a net property income yield of 6.5%, while the overall portfolio yield-on-cost was 5.8%, the exercise is accretive. Use the yield fields in this calculator alongside our S-REIT Yield vs Bond Spread Calculator to assess the impact on your income stream. Over a 10–15 year retirement portfolio horizon, consistently participating in DPU-accretive rights exercises — and reinvesting the dividends from the expanded holding — can significantly compound total returns. Pair this analysis with our Retirement Planning Calculator and Passive Income Guide to see how your REIT income fits within your overall retirement plan.
Frequently Asked Questions
What is TERP and why does it matter for Singapore investors?
TERP stands for Theoretical Ex-Rights Price — the expected share or unit price after a rights issue completes, calculated as a weighted average of the existing price and the rights subscription price. It matters because it gives you a benchmark: if the market price after the ex-rights date falls below TERP, the rights issue has been received poorly by the market. For S-REIT investors, TERP also determines your post-rights yield — if DPU stays constant and the price falls to TERP, your yield at TERP gives you the new effective dividend yield on your total invested cost.
What happens if I do nothing during a rights issue in Singapore?
If you do nothing during a rights issue, your nil-paid rights will expire worthless at the end of the subscription window. Your existing shares or units will be diluted because new units are issued to other subscribers. In most cases, doing nothing is the worst financial outcome — you absorb the full dilution without receiving the cash from selling your rights. The only scenario where doing nothing is rational is if you have a strong view that the acquisition being funded will destroy value and you prefer to reduce your position naturally through dilution.
Is a rights issue at a discount always good for existing shareholders?
Not necessarily. While a discounted rights issue means existing shareholders can buy new units below market price, the key question is what the new capital is used for. If a REIT raises equity to acquire properties at a low NPI yield (say, 4.5%) when its existing portfolio yields 6%, the exercise is DPU-dilutive — your income per unit falls even though you subscribed. Always check the projected DPU impact disclosed in the rights circular before subscribing. Accretive rights issues (where NPI yield exceeds the blended cost of equity) should result in higher DPU per unit after the exercise completes and the new properties begin contributing income.
How do I calculate my rights entitlement in Singapore?
Multiply your existing holdings by the rights ratio. For example, if you hold 15,000 units and the rights ratio is 1 new unit for every 4 existing units (i.e. 0.25), your entitlement is 15,000 × 0.25 = 3,750 new units. In practice, fractional entitlements are rounded down — so if you held 14,999 units, you would be entitled to 3,749 units (rounded down from 3,749.75). This calculator performs this rounding automatically. Any fractional entitlement is typically allotted by the issuer through a separate excess rights application process.
Can I use CPF OA to subscribe to a rights issue in Singapore?
Yes, if you hold the rights-issuing stock via your CPFIS-OA account at a CPF agent bank (DBS, OCBC, or UOB), you can subscribe using your CPF Ordinary Account balance. However, your CPF OA must have sufficient investible funds (CPF Board requires a minimum balance to be maintained). The agent bank will send you a letter with instructions. Note that the CPF Special Account and MediSave are not eligible for CPFIS equity subscriptions. The subscription deadline for CPFIS accounts is typically 1–2 days earlier than for cash accounts, so act promptly when you receive the notification.
What is the difference between renounceable and non-renounceable rights in Singapore?
Renounceable rights can be sold on the open market during the nil-paid rights trading window (typically 5–7 trading days). Non-renounceable rights cannot be sold — you either subscribe or they lapse. Most Singapore REIT rights issues are renounceable, which gives investors the flexibility to sell their rights if they do not wish to subscribe. The nil-paid rights trade on SGX under a temporary ticker and their price approximates the value of the subscription discount versus the TERP. If you cannot afford to subscribe, selling your renounceable rights is far better than doing nothing.
What rights issue discount to TERP is considered generous in Singapore?
In Singapore, a rights issue priced at a 15–25% discount to TERP is considered moderately attractive. Discounts above 30% suggest either urgency on the part of the issuer or significant market uncertainty about the transaction. For S-REITs specifically, larger discounts (25–35%) have been seen during periods of market stress or when funding large transformative acquisitions. A smaller discount (5–10%) implies the issuer is confident of support and the transaction is relatively routine. Always compare the rights price to both the current market price and the TERP, not just to the market price in isolation.
How does a rights issue affect the dividend yield of an S-REIT?
The post-rights yield depends on whether the acquisition funded by the rights exercise is DPU-accretive or dilutive. If DPU per unit increases after the new properties begin contributing income, your yield on the TERP price will be higher than your yield at the pre-rights price. If DPU per unit falls (because the acquisition generates lower income per unit or involves a transition period), your yield drops. Use the optional DPU field in this calculator to model both scenarios. As a rule of thumb, most well-managed Singapore REITs target at least DPU-neutral rights issues in the first full year of contribution from new assets, with accretion following in subsequent years.
Where can I find details of a Singapore rights issue announcement?
All Singapore-listed company announcements — including rights issue prospectuses, offering circulars, and timetables — are published on the SGX Company Announcements portal (sgx.com). Search for the company name or stock ticker and filter by “Offer Information Statement” or “Rights Issue”. The circular will contain the exact rights ratio, subscription price, record date, subscription window, and projected financial impact (including the DPU accretion/dilution analysis). For REITs, MAS also requires the circular to include independent valuations of the properties being acquired, which can help you assess the quality of the acquisition.
Put Your Rights Issue Analysis Into Action
Now that you understand your TERP and subscription cost, build your S-REIT income portfolio with confidence. Use our free tools and referral bonuses to put your knowledge into action.