HKEx’s Tightening of Capital Raising Activities Restricts Abusive Practices

Julia CharltonPartner, Charltons

The Hong Kong Stock Exchange has tightened the Listing Rules on capital raising activities by listed issuers which create unfairness to minority shareholders that the HKEX views as negatively affecting the market. Targets in particular are large scale deeply discounted capital raising activities, with rights issues, open offers and specific mandate placings that result in a material value dilution. All open offers now require minority shareholders’ approval, unless shares are issued under an existing general mandate.


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