The Stock Exchange of Hong Kong Limited ("HKSE") recently released the "Consultation Conclusions on Capital Raisings by Listed Issuers" and announced corresponding changes to Listing Rules. The changes, which will become effective on 3 July 2018, include:
- prohibition of capital raisings that would result in "value dilution" of 25% or more;
- removal of underwriting requirement for rights issues and open offers;
- imposition of mandatory minority shareholders' approval for open offers;
- restriction on placing of warrants or convertible securities under general mandate; and
- prohibition of subdivision or bonus issue of shares if the share price after adjustment is less than HK$1.