JK is seeking to raise new finance through a rights issue of equity shares.

The administration costs associated with a rights issue are higher than those for an initial public offering.

Shareholders must pay the full market price for shares offered in a rights issue.

An alternative name for a rights issue is a scrip issue of shares.

A rights issue will dilute an existing shareholder's control of the entity if they do not take up their rights.

Entities have the opportunity to underwrite a rights issue.

Shareholders' entitlement to rights may be sold on their behalf.