Teckningsrätter

Teckningsrätter, often translated as subscription rights or pre-emption rights, are financial instruments that give existing shareholders in a company the right to purchase newly issued shares. This right is typically offered proportionally to their current ownership stake. The primary purpose of issuing teckningsrätter is to allow existing shareholders to maintain their percentage ownership in the company when new capital is raised through a share issue. Without these rights, existing shareholders could see their ownership diluted if they are unable to participate in the new share offering.

When a company decides to issue new shares, it will often offer these teckningsrätter to its shareholders before offering them to the general public. Each teckningsrätt typically represents the right to subscribe to a certain number of new shares at a predetermined price, known as the subscription price. Shareholders have a limited period in which to exercise their rights. They can choose to subscribe to the new shares, sell their teckningsrätter to another party, or let them expire worthless if they do not wish to participate.

Teckningsrätter can be valuable for shareholders who want to increase their investment in the company or simply maintain their existing stake without being diluted. The market price of a teckningsrätt fluctuates based on the difference between the subscription price and the market price of the company's existing shares, as well as the time remaining until the expiry date. Companies use teckningsrätter as a way to raise capital efficiently while demonstrating consideration for their current investor base.