Follow-ons, rights issues and the capstone mandate

Module 05 / 5 · 65 min

Run rights issues and follow-ons to meet capital needs, compute the theoretical ex-rights price, arrange underwriting, and present a full mandate plan for Bank A.

In this module you will learn to

Explain rights issue mechanics and compute the theoretical ex-rights price and the value of a right
Size a capital raise from NBE capital requirements and the bank's growth plan
Assess underwriting and standby options and their cost
Present an integrated offer structure, timetable and investor education plan as lead adviser

Built on

Erudite Africa training module: Ethiopian Context, topic 3.e Equity Capital Markets (ECM), Levels 1 and 2 (October 2026), extended to Advanced depth
Capital Market Proclamation No. 1248/2021 and ECMA Fee Directive No. 996/2024; ECMA Directive No. 1030/2024 on public offers (reported in the program register, text to confirm)
Ethiopian Securities Exchange Rulebook (December 2024): Main Board Rule 5.1, Growth Board Rule 6.1 and trading rules
NBE directives as listed in the lessons: SBB/95/2025, SBB/91/2024, SBB/90/2024, SBB/89/2024, SBB/88/2024, SBB/87/2024 and SBB/78/2021 (reported)
Commercial Code Proclamation No. 1243/2021 on share issues and pre-emption (provisions described in general terms)
Public reports of the Ethio telecom 2024 share offer, used as a teaching case

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.