HKEx Publishes Consultation Paper on Proposals to Accelerate Rights Issues and Open Offers
Corporate
31 Jul 2009
Hong Kong Exchanges and Clearing Limited (HKEx) today (Friday) published a consultation paper on proposals to accelerate rights issues and open offers.
The consultation paper seeks the public's views regarding proposals to:
- Amend the minimum subscription period for rights issues and open offers from 14 calendar days to 10 business days.
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The consultation paper also contains other housekeeping amendments relating to notice of book closure and subscription periods.
“We have received proposals from market participants who think listed companies and their shareholders will benefit if we accelerate rights issues and open offers. They pointed out that rights issues and open offers have gained increased popularity and importance as a recapitalisation tool. We believe a shorter timetable may make it easier for more listed issuers to raise funds by rights issues or open offers which are in the interest of shareholders.” said Mark Dickens, HKEx's Head of Listing.
The consultation paper can be downloaded from the HKEx website. Interested parties are encouraged to respond to the consultation paper by completing and submitting the questionnaire. The deadline for replies to the consultation paper is 30 September 2009.
If HKEx concludes the proposals should be adopted, it will work with the Securities and Futures Commission on the relevant rule amendments.