Open offer
A type of corporate action. Like a rights issue, an open offer (also known as an entitlement issue) is a way for a company to raise money by offering its existing shareholders the right to buy new shares at a discount to the market price.
On top of your ‘basic entitlement’, open offers have an ‘Excess Application Facility’, giving you the chance to buy additional discounted shares. This is a separate pool of subscription shares, and as it isn’t guaranteed, it can be scaled back if oversubscribed.
Where an open offer differs from a rights issue is that you don’t have the option to sell your rights in the market. And if you do nothing, unlike a rights issue you won’t receive a lapsed payment.
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