TUI rights sold. What happends next?


Got an e-mail from BUX 0 about the fact that they are selling the emission rights of TUI. What will happen with my shares?
Will there value decrease?


Kreeg een e-mail van BUX 0 over het feit dat ze de emissierechten van TUI verkopen. Wat gebeurt er met mijn aandelen?Zal de waarde van mijn aandelen dalen?



Yes, TUI is issuing more shares, which will drop the share price.
However, they will allow current shareholders to buy the new shares at a price that is below the market price. This will allow TUI to raise more capital, without impacting current shareholders. Usually, the price will average out in such a way that the total market capitalization of the company will stay the same. If you were to use those rights, you would most likely not lose any money. However, BUX is not able to facilitate this, which is why they will sell those rights. Those rights are priced at approximately the difference between what you can buy the new shares for using those rights and the expected price after the issuing of the new shares.
That way, you won’t lose a lot of money.

Disclaimer: this is not investment advice


@Zwaan79 what @Stijnvi says is correct indeed. :+1:

This corporate action is called a Capital Raise and its effect on the stock price is referred to as dilution. For now, BUX will sell all your rights for you and credit your account with the cash proceeds. You will not have to do anything for this. We are also working on enabling users to either exercise or sell their rights themselves, directly from the app. Unfortunately I cannot give a timeline on this now, but it’s in the works.