4. Secondary Share Issue Flashcards
(124 cards)
What happens day after RI offer closing
Announcement to RIS
Two methods of making RI
Gazette Route and Disapplication Route
When is UW agreement dated for secondary share issues
Eve of admission - as for flotation
What happens in right issue if not all shares sold
Lead UW instructs broker to sell rump, and then if not sold, lead UW purchases stick
When is authority for secondary share issues usually acquired
At AGMs - anticipating need
What is the nature of application form for OO - tradeable?
Non-renounceable
What does company receive if M lets rights lapse in RI and broker sells on M’s behalf
Rights issue price - M receives premium on top
When is there a step to take before impact day - what kind of SSI
Placing
Four options for Ms in rights issue
Take up rights, sell rights, let rights lapse and a combination
2 principal reasons why pre-emption rights disapplied
Overseas Ms + fractional entitlements
By when must stick be sold for rights issue
5 WD
What do overseas Ms receive when pre-emption rights disapplied for them
Premium
What is used for open offers instead of PAL
Application form
What additional restriction does PEG put on placing in terms of percentages over years
7.5% for general in 3-year rolling period
When are CREST accounts credited for RI
Usually day 1 of offer period
SCM Guidelines on authority to allot for placing
1/3
When is GM notice period shortened + what resolution
At AGM - by SR
PEG on disapplication of pre-emption for placing
5% generally + 5% additional for acquisition/specified capital investment
Is a GM required if within current authority
No
Two provisions on AGM notice period
307A(1)(b) + 360(1)
What is a rights issue
Offer to existing Ms to subscribe for shares in proportion to existing holding via PALs
Two kinds of business dealt w/ at AGM
Special and ordinary
What kind of companies does 307A apply to
‘Traded’ - MM, not AIM
When must the sale of fractional entitlements and overseas Ms’ shares be done by in RI
Closing of offer