Exceptions to Calculating Adjustment Factors for Rights Issues

Last updated: September 4, 2026

Adjustment factors will not be calculated under the following circumstances:

  1. Rights Offering Price Exceeds the Closing Price

    • If the rights subscription price (offered price) is greater than the security's closing price on the relevant date, no adjustment factor will be applied.

  • When evaluating this condition, both prices must be compared in the same currency. If the rights subscription price and the security's closing price are denominated in different currencies, the rights subscription price should first be converted to the currency of the security's closing price using the applicable exchange rate.

Example:

  • Rights subscription price: AUD 200

  • Exchange rate: 1 AUD = 0.70 USD

  • Converted rights subscription price: USD 140

  • Security closing price: USD 50

Since the converted rights subscription price (USD 140) is greater than the security's closing price (USD 50), no adjustment factor will be calculated.

  1. Ex-Date is Unavailable

    • If the ex-date is not available, the adjustment factor will not be calculated.

    • This includes cases where EDI has confirmed that the ex-date information has not yet been published by the exchange or the issuing company.

    • If Ex-date is not specified, it needs to be confirmed from EDI (Data vendor)

  1. Rights Subscription Applies to a Different Security

    • No adjustment factor will be calculated when the rights offering entitles holders to subscribe to a security that is different from the underlying security being adjusted.

Supporting References

The exclusion of rights issues involving different securities is consistent with industry practices and external data provider methodologies:

  • FactSet

    • FactSet does not calculate adjustment factors for such events

  • Yahoo Finance

    • Historical pricing data for security 0116.XKLS indicates that no rights adjustment factor was applied for this event.

  • Refinitiv Corporate Actions Methodology

    • Refinitiv describes rights issue adjustments only in situations where the rights issue increases the share count and market capitalization of the same security

    • Rights issues result in capital inflow and increase the number of shares as well as the overall market capitalization of a security

  • Bloomberg Corporate Action Market Cap Index Methodology

    • Bloomberg explicitly excludes rights offerings involving different securities