All else equal, the greater the subscription price of shares in a rights offering, the smaller the number of rights needed to buy one new share.

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In a rights offering, the subscription price is the price at which existing shareholders can purchase new shares. The number of rights needed to buy one new share is determined by the terms of the offering and is not directly related to the subscription price. Typically, the lower the subscription price, the more attractive the offer is to shareholders, but this does not necessarily mean fewer rights are needed per new share. The ratio of rights to new shares is set by the company and can vary independently of the subscription price.

All Else Equal, the Greater the Subscription Price of Shares