Well today, the shares are worth 90 cents each, so you have lost very little.
Bank of Ireland says that they will raise around €1billion.
They have 1,004,193,740 shares in issue. I get confused by big numbers, but I think that is 1 billion shares.
So they will probably do something like the following. For each share you currently own, you will have the right to buy 2 shares at €.50 cents each.
To keep the maths simple
Today the company has 1billion shares at €1€ each, so it is worth €1billion.
At the end of March it will have 3 billion shares worth €2billion, so each share will be worth €0.67 each.
If you buy the shares you are entitled to, you will have 3,000 shares worth €2,000 which is the same as what you paid originally plus the additional capital you will subscribe.
If you don't have the money to subscribe for new shares, you will have 1,000 shares worth €670, so you will lose €330.
Any shares not bought by the shareholders, will be bought by the National Pensions Reserve Fund.
There may be a market for the rights. In other words, you might be able to sell your right to subscribe to someone else. Theoretically, the right to buy a share for 50 cents is worth 17cents.
Brendan