Rights issue historical pricing

Why when a rights issue takes place does the historical pricing change to the new pricing structure.

Basically when’s rights issue with heavy dilution takes place you should see a drop but in most cases the opposite is true. If you look at IAGs (Early Sept) rights issue it now appears like a spike and a rights issue boosted the price. Why is this? It’s misleading.


Data vendors operate differently but I would expect the historic prices to be rebased…otherwise your price history looks crazy…but I can’t confirm what T212 data vendor will do.

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What calculation do they use to rebase. How can a fall in share price look like a spike on price history, don’t get it.

IAG around 200 then goes down to like 130

On T212 and Google shows as 78 going to 134…

Is this because the dilution is applied to the old share price and then the new average which is obviously higher due to previous pricing and average of rights issue continues the run from the rights issue.

Thanks for your help

Actually, thinking again, I don’t think I’d expect a rebase. For a consolidation or split, yes. But for an RI, nah.

Weird isn’t it. Almost like the MM want to catch you out, look at that price jump they must be doing well…