Arrangements for Adjustment of GCL-Poly Structured Products and Options
Market Operations
16 Dec 2015
Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to GCL-Poly Energy Holdings Ltd (GCL-Poly) structured products and options to account for GCL-Poly's rights issue.
Overview
For details, please refer to the announcement made by GCL-Poly on 15 December 2015.
Highlights of the adjustment arrangements are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.
Structured products with shares of GCL-Poly as underlying asset
The listing documents of all existing structured products with the shares of GCL-Poly as underlying asset contain provisions that deal with a rights issue. Structured product issuers will make announcements in the evening of 28 December 2015 regarding the relevant adjustments (including the adjusted entitlement, adjusted exercise price and adjusted call price, as appropriate) and investors should read the contents of such announcements carefully.
GCL-Poly Options
Trading Arrangements
The trading arrangements for the existing GCL-Poly stock option under trading symbols PLE and PLA Note 1 will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions of GCL-Poly stock option series under trading symbols PLE and PLA which exist after the market close on the business day immediately before the ex-rights date will be adjusted and transferred to stock option series under trading symbols PLB and PLC respectively.
|
| 2. |
Introduction of New Stock Option Series for Trading
On the ex-rights date, new GCL-Poly stock option series based on the standard contract size will be introduced for trading under the standard trading symbol PLE. |
Details of the adjustment procedures for GCL-Poly stock option series under trading symbol PLE are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
5 existing Shares + (1 New Share x $1.12 / $S^)
5 existing Shares + 1 New Share |
Rounded to the nearest
4 decimal places.
Adjustment will only be made if the AR is smaller than 1. |
|
Adjusted Exercise Price (AEP) |
Exercise price of outstanding stock option series x AR |
Rounded to the nearest 2 decimal places |
|
Adjusted Contract Size (ACS) |
Exercise price of outstanding stock option series x (5,000 shares / AEP) |
Rounded to the nearest 4 decimal places |
Where $1.12 is the Subscription Price for the New Share and $S^ is the underlying stock closing price on 28 December 2015 (the business day immediately before the ex-rights date).
|
Contract |
Trading Symbol |
Contract Size
(Shares) |
Availability For Trading |
Addition of New Stock Option Series on and after the ex-rights date |
|
Adjusted |
PLB |
ACS |
From ex-rights date to
29 December 2016 |
No |
|
Standard |
PLE |
5,000 |
From ex-rights date onwards |
Yes |
| Note 1 |
PLA stock option contracts are the adjusted contracts generated from capital adjustment to be made on 22 December 2015 due to distribution of Special Dividend. |
Details of the adjustment procedures for GCL-Poly stock options series under trading symbol PLA are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
5 existing Shares + (1 New Share x $1.12 / $S^)
5 existing Shares + 1 New Share |
Rounded to the nearest 4 decimal places |
|
Adjusted Exercise Price (AEP) |
Exercise price of outstanding stock option series x AR |
Rounded to the nearest 2 decimal places |
|
Adjusted Contract Size (ACS) |
Exercise price of outstanding stock option series x (ACS*Note 2 / AEP) |
Rounded to the nearest 4 decimal places |
Where $1.12 is the Subscription Price for the New Share and $S^ is the underlying stock closing price on 28 December 2015 (the business day immediately before the ex-rights date).
|
Contract |
Trading Symbol |
Contract Size
(Shares) |
Availability For Trading |
Addition of New Stock Option Series on and after the ex-rights date |
|
Adjusted |
PLC |
ACS |
From ex-rights date to
29 December 2016 |
No |
|
Adjusted |
PLA |
ACS* |
Not available for trading from
ex-rights date onwards |
No |
| Note 2 |
ACS* as per the contract sizes stated in the comparative table of strike prices of GCL-Poly Energy Holdings Ltd in the circular to be issued on 21 December 2015. |
Investors should note that the adjusted and standard stock option series will have different contract sizes. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.
For detailed trading and clearing operational arrangement, please refer to the circular.
Ends