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  • OFS-2.5 OFS-2.5 Rights Offering

    • OFS-2.5.1

      Rights offerings of listed equity securities are subject to the eligibility criteria under this Module.

      January 2014

    • OFS-2.5.2

      The CBB may only grant its approval for a rights issue where the General Assembly of the issuer has issued a resolution approving such offer.

      January 2014

    • OFS-2.5.3

      An offering period of a rights offering must be approved by the CBB and must be close to the public announcement of financial statements so that shareholders and potential subscribers have the most recent financial information of the issuer.

      January 2014

    • OFS-2.5.4

      An application for approval of a rights issue must include the issue price and principal terms and conditions of the issue.

      January 2014

    • OFS-2.5.5

      If the rights offering is made at a high share premium or above the market price on a licensed exchange, such issue shall be subject to the underwriting requirement under Subparagraph OFS-1.6.1 (e).

      January 2014

    • OFS-2.5.6

      The content of the rights offering document must meet the minimum requirements provided in Appendix OFS-1, where relevant.

      January 2014

    • OFS-2.5.7

      To accommodate for the possibility of under subscription by the existing shareholders, issuers must prepare rights offering documents in line with public offering documents to avoid any delay regarding the approval of a further public offering where the rights issues are not fully underwritten or taken up.

      January 2014

    • OFS-2.5.8

      If the rights issue is not fully subscribed or fully underwritten and thereafter is made to the public, the prospectus requirements of Section OFS-5.1 apply in relation to the offering document.

      January 2014

    • OFS-2.5.9

      Any announcement made by the issuer or his advisors prior to receiving the approval of the CBB must clearly state that the rights issue is subject to the approval of the CBB.

      January 2014

    • OFS-2.5.10

      The issuer must disclose the price, terms and the purpose of the rights issue, as well as the financial circumstances that call for the rights issue.

      January 2014

    • OFS-2.5.11

      The offering period for a rights issue must be at least 15 calendar days.

      January 2014

    • OFS-2.5.12

      A rights issue which allows holders of securities to participate in proportion or pro rata to the amount of existing shares held, must allow for renunciation, in part or whole, in favour of a third party at the option of the entitled shareholders.

      January 2014

    • OFS-2.5.13

      The CBB will not allow any rights issue in which the rights cannot be renounced, in part or whole, in favour of a third party at the option of the entitled shareholders, unless the issuer made the necessary arrangements with a licensed exchange to trade the rights, subject to such renunciation.

      January 2014

    • OFS-2.5.14

      Subsequent to a rights issue, the issuer must submit to the CBB the results of the issue including an allotment report and, if any rights are not taken up or are sold, the details of the sale, including the date and price per share.

      January 2014