814

Past version: Effective from 29 Sep 2011 to 06 Feb 2020

(1) An issuer which intends to make a rights issue must announce (having regard to Rule 704(24)) the issue promptly. The announcement must include the following:
(a) price, terms and purpose of the issue;
(b) the amount of proceeds proposed to be raised;
(c) breakdown of the proposed use of proceeds;
(d) where the issue is proposed to be used mainly for general working capital purposes, the issuer must provide reasons for such use taking into account its working capital position;
(e) whether the issuer's directors are of the opinion that, after taking into consideration:
(i) the present bank facilities, the working capital available to the group is sufficient to meet its present requirements and if so, the directors must provide reasons for the issue; and
(ii) the present bank facilities and net proceeds of the issue, the working capital available to the group is sufficient to meet its present requirements;
(f) whether the issue will be underwritten;
(g) the financial circumstances which call for the issue; and
(h) whether it has obtained a listing and quotation notice from the Exchange or will be seeking the listing and quotation of the new shares arising from the rights issue.
In addition, an issuer must observe the disclosure requirements in Appendix 8A.
(2) If a rights issue involves an issue of convertible securities, the issuer must also comply with Part VI of this Chapter.

Refer to Appendix 8A — Disclosure Requirements for Rights Issue or Bought Deals.

(3) In the allotment of any excess rights shares, a confirmation to the sponsor that preference will be given to the rounding of odd lots. Directors and substantial shareholders who have control or influence over the issuer in connection with the day-to-day affairs of the issuer or the terms of the rights issue, or have representation (direct or through a nominee) on the board of the issuer will rank last in priority for the rounding of odd lots and allotment of excess rights shares.

Amended on 29 September 201129 September 2011.