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A price lower than the market price is called issue price. The price at which a new security will be distributed to the public prior to the new issue trading on the secondary market. Also commonly referred to as offering price.
The issue price is the price at which shares are offered for sale when they first become available to the public. Shares in the company slipped below their issue price on their first day of trading.
This is calculated by adding the total value of all of the Company's shares - the market capitalisation - before the rights issue to the total value of the shares being issued and dividing this sum by the total number of the Company's shares that will be in existence after the rights issue has completed.
The calculation of the Theoretical Ex-Rights Price (TERP) involves a specific formula: TERP = [(Number of existing shares * Price per share) + (Number of new shares * Rights issue price)] / Total number of shares after the rights issue.
The issue price, also called price band, is the stock's face value plus the premium that a company demands to charge from its investors. In simpler words, The issue price of the share = Face Value of the share + Premium asked by the company on the share.