Open offer settlement is the exchange of cash for new shares that completes an open offer to existing shareholders. A holder accepts by sending an instruction through the central securities depository that transfers the open offer entitlements to the company's receiving agent together with payment of the subscription price. Instructions and funds must reach the agent by the closing time stated in the offer document.
After the offer closes, the receiving agent totals valid acceptances and scales back applications for excess shares if demand exceeds the shares available, refunding the difference. Once any shareholder approval has been obtained and the new shares are admitted to trading, the registrar issues them and they are credited to applicants' accounts. The earlier stages are described under open offer processing, and the comparable step in a rights issue under rights exercise; admission is covered by listing admission.