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Rights Offering & CB Dilution Calculator

Calculate how much your ownership and the share price are diluted when a rights offering or CB conversion occurs.

Calculated in your browser only · inputs are not saved
Type
shares
shares
KRW
KRW
shares

Allotted shares = my holdings × (new shares / existing shares). In practice, it may be slightly lower because of the employee stock ownership allotment and similar.

Rights Offering & CB Dilution Calculator

Enter your values and press Calculate

Share count dilution

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Theoretical price (ex-rights)

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Change in my ownership

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Change in my holding value

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    Dilution risk

    When a filing appears, calculate first

    Rights offerings and CB conversions increase the share count and shrink existing shareholders' slice. The lower the issue price relative to the current price, the bigger the price dilution.

    1. Enter the filing numbers

      Enter the existing total shares outstanding, new (conversion) shares and issue (conversion) price from the DART filing (DART, the FSS electronic disclosure system).

    2. Enter your holdings

      Enter your share count to see the change in ownership and value.

    3. Whether you subscribe

      For a shareholder-allocated offering, compare how the result differs depending on whether you subscribe.

    Dilution = new shares / (existing shares + new shares) Theoretical ex-rights price = (existing shares × current price + new shares × issue price) / (existing shares + new shares)

    The actual ex-rights reference price is set by the exchange using a separate formula, and market prices vary with supply and demand and the intended use of proceeds. Note that with CB/BW conversion, only the share count rises, with no new money entering the company (bonds already issued are swapped into shares). You can check conversion schedules in the CB/BW Conversions calendar.

    FAQ

    What happens if I don't take part in a shareholder-allocated rights offering?

    If you don't exercise your subscription right, your ownership is diluted, and the ex-rights adjustment can theoretically lower the share price and reduce your holding value. Selling the subscription rights certificate can recoup part of it.

    Why does CB conversion weigh on the share price?

    When the share price is above the conversion price, bondholders can convert into shares and sell for a profit. When those shares hit the market they create selling pressure, which is called an overhang.

    What is refixing (conversion price adjustment)?

    It is a clause that lowers the CB conversion price when the share price falls. A lower conversion price increases the number of conversion shares and makes dilution larger.

    Results are estimates based on your inputs and simplified assumptions, and are for reference only, not a basis for investment decisions.

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