Ericsson, the Swedish telecom equipment manufacturer, has announced that its E3.2 billion rights issue is oversubscribed.
More than 99.5% of the new B shares offered have been subscribed to through the exercise of rights. In addition, around 35% of the total rights offering has been applied for on a non-preferential basis. The fact that the right offering is fully subscribed means that there will be no allocation of new B shares to underwriters.
The success of the issue indicates that Ericsson has some support from its shareholders. However, the offering was heavily discounted, due to uncertainty in the stock markets.