The rights issue exercises implemented with mandate obtained under the temporary relief measure are subjected to certain conditions
PETALING JAYA: The Securities Commission (SC) and Bursa Malaysia has announced a temporary relief measure allowing eligible listed issuers to obtain mandated shareholder approval at a general meeting to undertake rights issue exercises.
In a joint statement, the capital market regulators said this temporary flexibility to allow expedited right issue exercises by public listed companies (PLCs) and listed real estate investment trusts (REITs) would be introduced via an enhanced rights issue framework, which would allow eligible PLCs and REITs to issue new rights shares or units to their existing securities holders on a pro rata basis, up to 50% of the total number of issued shares or issued units.
“The rights issue exercises implemented with mandate obtained under the temporary relief measure are subjected to certain conditions, for example, such rights issue must be a plain vanilla issuance where it can only be utilised for ordinary shares or units and not any other types of securities such as warrant or convertible shares, ” they said.
Did you find this article insightful?
