Recent changes to the ASX Listing Rule prescribed timetables for
rights issues will allow companies to raise capital more quickly by
a shortened timetable for traditional rights issues; and
new standard timetables for accelerated rights issues.
The changes came into effect on 14 April 2014 and the new
timetable for traditional rights issues will apply to rights issues
with a record date on or after 22 April 20141.
In this Alert, Partner Michael Hansel and Associate Katherine
Hammond set out the key changes that will impact companies looking
to undertake a rights issue.
The ASX has reduced the standard timetable for renounceable and
non-renounceable traditional rights issues from 26 business days to
19 business days.
The ASX Listing Rules now contain new timetables for various
classes of accelerated rights issues. These range from 18 to 22
Changes to the timetables for both traditional and accelerated
rights issues under the ASX Listing Rules will take effect from 14
The introduction of these new timetables will mean that
companies can now undertake accelerated rights issues without
needing to apply for waivers of various Listing Rules.
Rationale for changes
The ASX has identified the importance of maintaining rights
issues as a feasible capital raising mechanism, and initiated a
consultation process in July 2012 in relation to the timetables for
traditional rights issues and new timetables for accelerated rights
issues. The new timetables seek to provide companies with
flexibility in raising capital under a rights issue.
Traditional rights issues
The ASX has shortened the timetable for traditional rights
issues by making the following changes:
Accelerated rights issues
The ASX has also implemented standard timetables for the
following varieties of accelerated rights issues:
accelerated renounceable entitlement offers
(AREO) and simultaneous accelerated renounceable
entitlement offers (SAREO); and
accelerated renounceable entitlement offers with retail trading
The timetables are consistent with the timetables that the ASX
previously considered acceptable when companies sought to undertake
an accelerated rights issue. However, the introduction of these new
timetables will mean that companies can now undertake accelerated
rights issues without needing to apply for waivers of various
Listing Rules. This will speed up the capital raising process and
remove the administrative burden of applying for waivers.
The ASX has expressed interest in reducing the timetables even
further, and has foreshadowed that time can be saved by allowing
electronic dissemination of documents and incorporating a real-time
payment mechanism. However, as implementation of such processes
still requires further review, ASX has indicated that it is
unlikely that timetables will be reduced further before the end of
New timetable - traditional renounceable and non-renounceable
New timetable - accelerated renounceable and
non-renounceable rights issues
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