What is the difference between rights and warrants on Pluang?
Rights and warrants on Pluang are both entitlements to buy company shares at a fixed price, but they differ in tenor, issuance context, and trading rules. Rights (HMETD, "-R") are short-window pre-emptive entitlements offered to existing shareholders before the cum date, valid only days to weeks, traded on the TN market in session 1 only. Warrants ("-W") are long-dated bonus instruments valid for several years, issued alongside an IPO or rights issue, traded on the RG market across both sessions. Both expire worthless if unexercised and unsold by their Trading End date, and neither carries dividend rights until exercised into the underlying shares.
Side-by-side comparison:
| Attribute | Rights (-R) | Warrants (-W) |
|---|---|---|
| Indonesian term | HMETD (Hak Memesan Efek Terlebih Dahulu) | Waran |
| Tenor | Days to weeks | Several years |
| When issued | During a rights issue (capital raise) | As a bonus during IPO or rights issue |
| Who gets them | Existing shareholders before cum date | Investors who participate in IPO or rights issue |
| Trading market on Pluang | TN market, session 1 only | RG market, both sessions |
| Exercise sessions | Session 1 only | Both sessions |
| If not used by Trading End | Expires worthless | Expires worthless |
| Ticker suffix | -R (e.g. BBCA-R) | -W (e.g. BBCA-W) |
Related questions:
Q: Are rights more valuable than warrants?
Neither is inherently more valuable — they're priced on different bases. Rights are priced close to the discount versus current market price; warrants reflect time value over years plus the strike-to-market gap, so pricing can swing more.
Q: Can the same company issue both rights and warrants?
Yes. A company can run a rights issue and bundle warrants as a sweetener — investors who exercise rights during that corporate action may also receive warrants as an extra bonus.
Q: Do rights and warrants pay dividends?
No. Holding a right or warrant alone doesn't entitle you to dividends. Only the underlying shares — once you exercise into them — make you eligible for future dividend payments.
Q: Which is riskier, rights or warrants?
Both can expire worthless, so neither is risk-free. Warrants carry longer time exposure, giving the underlying more time to move favorably; rights have a much shorter window, concentrating timing risk into days or weeks.