ASX’s proposals for a shorter timetable of 16 business days for standard rights issues are designed to make the standard rights issue a more attractive capital raising mechanism by potentially reducing market risk and costs of issuing. A further shorter timetable for accelerated rights issues of less than a week is still on the cards following finalisation of the standards rights issue timetable.

On 3 July 2012, ASX released a consultation paper setting out proposals to reduce the standard rights issue timetable from the current maximum timetable of 26 business days to a maximum timetable of 16 business days.  The proposals are aimed at ensuring that standard rights issues remain a viable method to raise capital.

Submissions were due by 14 August 2012.

The ASX Listing Rules do not currently provide a standard timetable for an accelerated rights issue despite public consultation in 2011. ASX has confirmed that such accelerated timetable will not be finalised until implementation of changes to the standard timetable following the current consultation.  ASX has identified that the two threshold issues to be considered are:

  • the use of a retrospective record date for determining who is entitled to participate in the rights issue; and
  • the electronic dissemination of disclosure documentation and the use of electronic funds transfer.

In the meantime, issuers need to obtain standard form ASX waivers to facilitate an accelerated offer.

See further analysis in G+T’s M+A Perspectives – July 2012.

See ASX’s consultation paper.

See ASX’s media release, dated 3 July 2012.