I am new to all these npl's too. So if I purchase 1000 rights - and then 1000 NHM shares for the price of R41.00 I can resell them for current market value R48.00? Sounds a bit too good to be true. How many shares can be purchased with each Right?
1 right has to be exercised to get 1 underlying share.
So if you buy 1000 rights at 77c then take them up for a further 4100, you will have 1000 underlying shares at an average cost of 4177cps. But you will only receive these shares after the expiry date of the NPL'S. That's why the rights need to trade at underlying-strike price to eliminate the arbitrage opportunity and why I'm saying the rights are severely undervalued currently