A benefit distribution in which existing shareholders are offered an entitlement to purchase shares in proportion to their shareholdings as at record date.
Entitles shareholders to buy shares in proportion to existing entitlements, but this right is not transferable.... more on: Open offer
Used by a Company to raise extra finance. Shareholders are given the opportunity to purchase extra shares to add to their existing holdings. You cannot sell your entitlement under an Open Offer as you can a Rights Issue.