What Is a Right?
When a company wants to raise money by issuing new shares, it gives existing shareholders the first opportunity to buy them. To do that, it issues rights — one for each share you already own.
A right is a temporary security that appears in your portfolio, just like a stock. It has its own ticker (formatted as COMPANY_R) and can be traded on exchange during a specific window.
It gives you the option to buy one new share at a fixed price (the subscription price) — typically lower than the current market price.
If you don't sell or use your rights before the deadline, they expire and lose their value.
Types of Rights Issues
There are two types based on how the subscription price is determined:
Type | What it means |
At par value | New shares are offered at their nominal (face) value — usually well below the market price. |
At fair market value (FMV) | The subscription price is set at the stock's fair market value, determined by an independent financial advisor. |
Note: In Egypt, most rights issues are done at par value. The regulatory approval process through the FRA (Financial Regulatory Authority) is faster for par value increases.
When and Why Do I Receive Rights?
You receive rights when a company you hold shares in announces a capital increase.
Companies raise capital to:
Fund expansion
Finance new projects
Reduce debt
The issuance must be approved by the regulator before rights are distributed.
Here’s how eligibility works:
The exchange sets a record date
If you hold shares at market close on that date, you qualify
Rights are added automatically to your Thndr portfolio
You’ll receive a notification when they appear
The number of rights you receive is proportional to your existing holding. The exact ratio (e.g. 1 right for every 12 shares) is specified in the company's official announcement.
Note: If you buy the stock after the record date, you won't receive rights for that purchase. However, you can still buy rights on the market during the trading period and use them to subscribe.
Market Price vs. Subscription Price
Rights involve two different prices — it's worth knowing the difference.
Market Price
This is the price the right trades at on exchange. It fluctuates during the trading day, just like a stock. If you decide to sell your rights, you'll get the current market price.
Subscription Price
This is the fixed price set by the company at which you can buy new shares using your rights. It's typically set below the current stock market price — that discount is what gives the right its value.
Example: If a stock trades at EGP 50 and the subscription price is EGP 35, the right gives you access to buy a share at EGP 15 below market. The right itself would trade at roughly EGP 15 on the market.
Important: Selling the right and subscribing are two separate actions. You can't do both with the same right.
What Can You Do With Your Rights?
Once rights appear in your portfolio, you have a few options. Rights that aren't used or sold by the deadline expire worthless.
Option 1: Sell your rights
Treat them like a stock — tap the right in your portfolio and place a sell order. This is a good option if you don't want to invest more in the company but still want to capture the value.
Option 2: Subscribe to new shares (first tranche)
Use your rights to buy new shares at the subscription price. Tap the right in your portfolio and tap Subscribe.
How to subscribe through Thndr:
Make sure your national ID is valid and not expiring within the next 45 days.
Open the stock's page in the app and tap Subscribe.
Enter the quantity you want to subscribe and confirm your order.
When you confirm:
The required cash is blocked immediately: quantity × subscription price + EGP 60 fee (free for Thndr Trader subscribers)
Your order shows as Pending until processed by the operations team
You can cancel a Pending order — once it moves to Processing, cancellation is no longer possible
Conversion of rights into shares takes 1–3 months after the subscription ends
Note: To subscribe, your national ID must be valid and not expiring within the next 45 days. This option is only available for users with Thndr custody.
Important: Subscriptions through Thndr close 1 working day before the official bank subscription deadline to allow time for processing and reconciliation.
Option 3: Subscribe in the second tranche
After the first tranche ends, any unexercised rights are pooled. If the company opens a second tranche, any shareholder who holds at least 1 right can apply for additional shares — beyond what they received originally.
Allocation is made on a pro-rata basis depending on available unallocated shares
If demand exceeds the remaining supply, your final allocation may be less than what you applied for
The second tranche window is typically around 3 days
This option is only available for users with Thndr custody.
Option 4: Do nothing
Your existing shares are unaffected, but your rights expire and lose all their value — which means you're giving up something worth real money for free. On top of that, a capital increase dilutes existing shareholders, so your ownership percentage decreases as new shares are issued.
We strongly recommend selling your rights if you don't plan to subscribe. It takes just a few taps and ensures you capture their value before the deadline.
Rights issue timeline
Each rights issue follows its own schedule, but the typical flow looks like this:
Stage | What happens | Approx. duration |
Record date | Exchange determines which shareholders are eligible to receive rights | — |
Trading start — first tranche | Rights appear in your portfolio; you can sell them on the market or subscribe to new shares | — |
Trading end — first tranche | Last day to sell your rights on Exchange | ~4 weeks after trading starts |
Subscription end — first tranche | Last day to subscribe. In-app closes 1 working day before the official bank deadline | — |
Subscription start — second tranche | Shareholders holding at least 1 right can apply for additional shares | — |
Subscription end — second tranche | Second tranche closes; unexercised rights expire and lose all value | ~3 days after it opens |
Conversion to shares | Subscribed shares are issued and appear in your portfolio | 1–3 months after close |
Check the specific dates for each rights issue in the app — timelines vary.
What are the risks
Share price may decline — Capital increases dilute existing shareholders, which can temporarily push the stock price down.
Liquidity is locked — Subscribed cash is blocked for the duration of processing, and new shares can take 1–3 months to appear in your portfolio.
No guaranteed allocation in the second tranche — If the second tranche is oversubscribed, you may receive fewer shares than you applied for.
Rights can expire worthless — If you miss the deadlines, your rights lose all value.
FAQs
How long do I have to act?
Each rights issue has its own timeline. Typically: rights start trading and subscriptions open on the same day; trading ends a few days before the subscription deadline; the final subscription date is usually 3 days after the last trading day. Check your rights in the app for exact dates.
Can I buy rights if I didn't hold the stock on the record date?
Yes. You can buy rights from other shareholders during the trading period on exchange and use them to subscribe, just like any other shareholder.
What happens to my cash when I subscribe?
The full amount (quantity × subscription price + fee if applicable) is blocked in your wallet when you place the order. It's deducted when the subscription completes and released if you cancel.
What if I don't have enough cash to subscribe?
You can sell your rights on the market to capture their value instead.
Can I both sell some rights and subscribe with others?
Yes — as long as the total quantity across both actions doesn't exceed what you hold.
How long until I see the new shares in my portfolio?
Converting rights into shares takes 1–3 months after the subscription period ends, depending on the company.