How does the conversion price change when there is a rights issue, a stock dividend or a capital reduction?

When the conversion price is lowered for reasons other than market price movements that reduce share value, such as a capital increase or stock dividend, it may be lowered only to a price at or above one calculated by applying the ratio by which share value fell for that reason (introduced in December 2024).

Conversely, when an event that raises share value occurs, such as a capital reduction or reverse stock split, a listed company must issue convertible bonds on terms that raise the conversion price by the corresponding adjustment ratio. These rules also apply mutatis mutandis to bonds with warrants, so check the adjustment clauses of each bond in its issuance disclosure.