What if growing your investment didn’t mean chasing new stocks or making rushed decisions? Sometimes, growth starts with what you already own. A Rights Issue is one of those opportunities created specifically to help you achieve that.

Let’s break it down. What is a Rights Issue?

A Right Issue is an offer made by a company to its existing shareholders to buy more shares at a discounted price. Think of it like an exclusive sale, or an invitation reserved for a group of people to buy additional shares before the public can. This helps you grow your investment without needing to purchase from scratch.

For example, let’s say you already own shares in Dangote Cement. If they announce a Right Issue, they might offer you the chance to buy more shares at a price lower than what the market is offering. This could be a great way to increase your investment in a company you already believe in.

Ways to Grow Investments with Existing Shares

1. Participate in Right Issues: If you own shares in a company offering a Right Issue, you can buy more shares at a discount. This is an excellent way to expand your investment without having to search for new opportunities.
2. Reinvest Dividends: Rather than taking the cash, you can reinvest those dividends to buy more shares of the same company. This simple strategy helps you grow your investment over time without additional out-of-pocket expenses.
3. Keep an Eye on Stock Splits: Sometimes, companies split their shares to make them more affordable. While the value of your investment remains the same initially, more shares at a lower price could open new opportunities for growth.

Before getting started, it’s important to understand what a Rights Issue is and decide if it aligns with your investment goals. Take time to research the company, its performance, and growth potential. Investing is a long-term journey, so staying consistent with strategies like reinvesting dividends or participating in Rights Issues can help your portfolio grow steadily over time. Above all, be sure you understand both the risks and rewards before committing your money.

Speaking of Rights Issues, Fidson Healthcare PLC’s Rights Issue is currently open. Eligible shareholders can subscribe to 600 million ordinary shares at ₦35 per share, giving them the opportunity to participate in the continued growth of one of Nigeria’s leading pharmaceutical companies.

To get started or receive guidance, please send an email to customerservice@armsecurities.com.ng or call 0700 ARMENGAGE.