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What are Nil Paid Shares?


Nil Paid shares (NPD or Nil Paid Rights) are issued in a Rights Issue to show your entitlement to buy new shares at a set price.

If you wish to buy more ORD shares in the Company because you think the offer is attractive, you are required to send in your instruction.

When we make our election to the market, you will then be debited with the Total Call Cost. Your Nil Paid shares will then be removed from your account and you will be allocated Fully Paid Rights or shares (FPD).

This reflects that your instruction has been processed and your entitlement to the new ORD shares.

Once the new ORD shares are received from the market these shares will be added to your account. At the same time, the Fully Paid Shares will be removed.

Alternatively, you can sell your Nil Paid rights in the market to allow somebody else to take up the offer. This sale is treated the same as any other trade and is subject to the usual dealing commission charges.

The third option is to do nothing, or lapse your rights. If you do this, you may be entitled to a Lapsed Rights Premium by the Company. This is a set amount of money
paid for every Nil Paid Share that you lapse. This payment is not guaranteed.

Occasionally, some clients may wish to sell part of their entitlement in order to fund the take up of the rest of their entitlement. This is called Tail Swallowing.


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